Sweden’s output contracted less than indicated by an initial estimate in the second quarter as the Nordic country’s economy is set to see a recovery buoyed by interest-rate cuts and fiscal stimulus.

Gross domestic product shrank by 0.3% from the first three months of the year, according to seasonally adjusted data published by Statistics Sweden Thursday. While that was the weakest outcome in a year, it was still better than the agency’s previous estimate for a 0.8% contraction.