"The economic recovery in the Swedish economy has now come a long way and the recession will ebb in 2027," KI writes in a forecast update.
GDP growth is expected to reach 2.4 percent this year, up from the previous forecast of 2.2 percent. Next year, growth is expected to reach 2.8 percent.
Unemployment is expected to reach 8.6 percent this year, the same figure as in the previous forecast. In 2027, unemployment is expected to fall to 7.9 percent, before falling further to 7.2 percent the following year.
"Although households were cautious about increasing consumption in the second quarter, consumption has grown in recent years and this trend will continue in the future, which is an important driving force for the continued recovery," KI writes.
Inflation measured as CPIF is expected to amount to 1.3 percent this year, rising to 2.1 percent next year.
"Inflation is currently low, but it will rise to over 2 percent next year even when energy prices and tax changes are ignored. The Swedish Central Bank will therefore raise the key interest rate by 0.25 percentage points later this year and once again next year," KI writes.
