The Swedish Central Bank is raising the key interest rate in two steps to 2.25 percent, starting in December, according to the forecast, to avoid high inflation.
"Households and companies should assume that interest rates in the future will be somewhat higher than today, even if we do not see any major upturn," says Christina Nyman, the bank's chief economist, in a press release.
This year's growth is explained by increased investment, stronger household finances and growing demand in the business sector. Unemployment is expected to fall to 7.5 percent in 2028.
For 2027-2028, the growth forecast has been lowered to 2.4 and 1.8 percent, respectively. The forecast was 2.5 and 1.9 percent, respectively, in April.
