The Swedish economy shrank 0.8% in the second quarter from the previous three months, less than indicated in a preliminary reading and also a smaller drop than expected by analysts, data from the Statistics Office showed on Tuesday.

The gross domestic product (GDP) flash estimate published July 28 had been for a 1.5% fall. Analysts polled by Reuters had predicted the final GDP reading would show a decline of 1.3%.

Year-on-year, GDP was down 1.0%, the Statistics Office said in a statement on Tuesday. Its preliminary reading had been for a 2.4% drop.

"The downturn is mainly explained by reduced exports of goods and by a decrease in inventories," the agency said in a statement.

Over the preceding quarters the Nordic country's economy was relatively strong despite surging inflation, higher interest rates, a shaky property market and global uncertainties. In 2022, it expanded 2.8%.

The government last week lowered its GDP forecast for this year to see a 0.8% contraction. The central bank's latest forecast, from June, is for a 0.5% drop. (Reporting by Anna Ringstrom, editing by Terje Solsvik)