Sweden’s economy showed further signs of weakness at the start of 2026, with gross domestic product (GDP) falling more sharply on a month-over-month basis. According to the latest data updated on 10 March 2026, GDP declined by 1.1% in January 2026 compared with the previous month, a steeper drop than the 0.7% month-on-month contraction recorded in December 2025.
The figures indicate that the downturn is intensifying rather than stabilizing. The December 2025 reading of -0.7% reflected the change from November to December, while the January 2026 print of -1.1% captures the shift from December to January. On this comparison basis, the Swedish economy has moved from a moderate monthly contraction into a more pronounced decline, underscoring a fragile macroeconomic backdrop as the year begins.
Market participants and policymakers are likely to view the acceleration in the GDP decline as a warning sign for Sweden’s short-term growth prospects. With two consecutive months of negative month-over-month readings and a deeper fall in January, attention will focus on upcoming data releases to assess whether this marks a temporary dip or the onset of a more prolonged slowdown in activity.
