Sweden’s GDP expanded 1.4% quarter on quarter in the second quarter of 2025, matching economists’ forecasts and rebounding from stagnation in the first quarter. Statistics Sweden said growth was broad-based, led by household consumption and services, with manufacturing and construction also gaining. Exports remained important but grew more slowly than in the previous quarter. The result suggests Sweden avoided a technical recession and supports the view that the economy is recovering on the strength of domestic demand. The Riksbank (Sweden’s central bank) has been balancing inflation control with support for growth after inflation eased from its peaks, and the data is consistent with its gradual move toward a more accommodative stance. The Swedish krona strengthened slightly against the euro and the OMX Stockholm index edged higher after the release. Analysts regard the figures as supportive of the Riksbank’s soft-landing strategy, although growth remains modest and the second half of 2025 faces risks from trade tensions, global disruptions, inflationary pressures and geopolitical shocks. The Riksbank issued no immediate formal response, while the data is expected to be considered in assessing its current monetary stance.