In the third quarter, Sweden’s economy grew by 2.4% compared to the same time last year. This growth matches analysts’ expectations and shows that Sweden’s economic situation is stable.

Growth Across Various Sectors

The growth is backed by strong performance in several sectors, proving that the economy can endure global challenges. Ongoing growth hints at possible expansion in the near future, while consumer confidence remains high and investment levels are steady. Market players will keep an eye on economic data to understand what’s next for Sweden’s economy. The information indicates a stable and resilient economy, creating favorable conditions for ongoing growth. The third quarter GDP figure met expectations, so the market has already accounted for this. Therefore, we likely won’t see any sudden surprises. This consistent performance could also reduce implied volatility for Swedish assets in the coming weeks. We believe this is a good time to consider strategies that benefit from lower volatility, such as selling short-dated options on the OMXS30 index. The steady 2.4% growth, along with October’s core inflation rate of 2.2%, leaves the Riksbank with little reason to change its monetary policy. The central bank is expected to keep its current interest rate until the end of the year, which removes the chance of an unexpected rate cut. We are therefore adjusting our interest rate swap positions for a stable outlook into early 2026.

Swedish Economy Outlook

Given how well the Swedish economy is doing, especially compared to the slow industrial production reported in Germany, the Swedish Krona seems appealing. We expect the SEK to strengthen against the Euro as we approach the holiday season. As a result, we plan to invest in EUR/SEK put options to take advantage of this trend. The resilience seen in this report is positive for Swedish stocks, particularly for companies focused on exports and technology. This reinforces our belief in maintaining a long position on the OMXS30. We will look to increase our holdings in index futures set to expire in early 2026 during any minor market dips in the next few weeks. This situation reminds us of the recovery period after the financial crisis in 2010-2011, when steady growth led to a slow but consistent market increase. At that time, markets rewarded stability after a period of high uncertainty, a pattern we expect to see again. This historical perspective supports our strategy of staying invested rather than trying to time a significant breakthrough. Create your live VT Markets account and start trading now.

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