Sweden's GDP increased 4.6 percent in second quarter 2010.

• Sweden hikes interest rate as economy recovers
• Sweden's economy booms ahead of election

Sweden's economy increased by 4.6 percent in the second quarter, working-day adjusted and compared to the second quarter of 2009, the statistics office said Wednesday. Seasonally adjusted GDP increased by 1.9 percent compared with the first quarter of 2010.

Exports increased by 13 percent and imports by 18 percent. Industrial production increased by 6.6 percent.

Last week Sweden's central bank raised its benchmark interest rate by 0.25 points to 0.75 percent as the country's economy makes a strong recovery from recession.

"The Swedish economy is continuing to show strong growth," the Riksbank said in a statement explaining its decision.

Prospects for Sweden's economy, a hot issue ahead of upcoming September 19 elections, are looking bright thanks to exports, domestic demand and strong public finances, several banks and the country's financial management authority said last week.