Scandinavian Macroeconomic Data Are below Expectations

The Swedish economy expanded in 2Q16 by 3.1% on an annual basis—compared to 4.2% growth in the previous quarter and below expectations of 3.7% growth in its economy. On a quarterly basis, the GDP rose by 0.3% in 2Q16—compared a 0.4% rise in the previous quarter and below estimated growth forecasts of 0.7%. It was the worst performance since 2Q13 when there was a contraction in the country. Weaker exports along with sluggish investment growth contributed to the fall in growth momentum. The iShares MSCI Sweden (EWD) rose by 0.86%, while Swedish company Ericsson (ERIC) rose by 0.4% on July 29.

Retail sales in Norway fell on an annual basis by 1.4% in June—compared to a rise of 0.5% in the previous month. On a monthly basis, Norwegian retail sales contracted by 0.6%—compared to 1.7% growth in the previous month. Business confidence in Norway continued to be in the negative zone at -2 in the second quarter—compared to -7 in the previous quarter. The iShares MSCI Norway Capped (ENOR) rose by 1.0%, while Norwegian company Statoil ASA (STO) rose by 0.44% on July 29.

The unemployment rate in Denmark stayed at 4.2% in June—among the economies that have the lowest rate in the Eurozone. The unemployment rate in Denmark’s economy fell from 4.7% last year to 4.2%. The iShares Europe (IEV) rose by 0.96% on July 29.