Stockholm/Copenhagen - Dismal statistics published Friday further underlined that Nordic neighbours Denmark, Finland and Sweden were in recession.

Statistics Sweden reported that the Swedish gross domestic product (GDP) declined 4.9 per cent year-on-year in the fourth quarter 2008, including lower household consumption.

Swedish exports fell 7.2 per cent while imports dropped 5.4 per cent, the agency said, noting the impact from the troubled automotive industry.

Seasonally adjusted, GDP declined 2.4 per cent compared with the third quarter of 2008, the agency added.

Stockholm - The Swedish central bank Friday said it has signed a deal to help neighbouring Estonia with a bridging loan worth 10 billion kronor (1.1 billion dollars).

The move was described as a "precautionary arrangement" to help the central bank of Estonia, Eesti Pank, gain access to credits.

"It is important that central banks cooperate and assist each other in times of financial stress," Swedish Riksbank governor Stefan Invges said in a statement, adding that "the financial systems in Estonia and Sweden are closely linked."

Stockholm  - Swedish Crown Princess Victoria's engagement has created a feel-good atmosphere in Sweden and a break from news dominated by gloomy economic forecasts.

Victoria, 31 and her boyfriend Daniel Westling, 35, ended years of speculation with the announcement Tuesday. The couple said they plan to marry in early summer 2010. They have been dating since 2002.

A poll commissioned by commercial broadcaster TV4 and published Wednesday, showed broad support among Swedes for the couple's plans.

Stockholm  - Troubled Swedish car maker Saab was hit by another blow Wednesday as the Swedish Customs agency halted the flow of imported parts for its assembly over unpaid customs duties, Swedish radio news reported.

Last week Saab filed for bankruptcy protection and launched a reorganization process after its US owner General Motors said it planned to shed the loss-making brand.

Saab cannot import parts for its cars or export assembled cars from Sweden until it can show it can pay the customs duties, the report said.

Stockholm - Swedish clothing retail giant Hennes & Mauritz (H&M) plans to add South Korea to the list of countries it operates in, the group said Wednesday.

The company said it has inked a deal to open a store in the South Korean capital Seoul during the spring of 2010.

"We look forward to establishing in South Korea. We have positive experiences from our establishments in Japan, Hong Kong and China and see South Korea as a natural consecutive step," H&M chief executive Rolf Eriksen said in a statement.

This year, H&M is planning to open 225 stores worldwide, mainly in Britain, the United States, Spain, France, Germany and Italy. The company's first stores were also due to open in Moscow and Beijing.

Stockholm - Swedish Crown Princess Victoria has become engaged to her boyfriend Daniel Westling, the royal palace announced Tuesday, ending years of speculation.

The princess, 31, has been dating Westling since 2002.

The wedding was due in early summer 2010, the palace said, and Westling, 35, will be known as Prince Daniel, Duke of Vastergotland.

The couple expressed "tremendous joy" and happiness Tuesday. The formal announcement ends years of speculation over their plans for the future.