The bank now expects slightly higher GDP growth: 2.8 percent this year and 2.5 percent next year, compared with its previous forecast.
"The rise in GDP is driven primarily by increased household consumption and increased investments in the business sector," SBAB says.
Inflation is expected to be below target this year and next year.
As household finances improve, housing prices are also expected to increase, by 4.7 percent in 2026 and 4.3 percent next year. However, SBAB says it will continue to be tough for housing construction.
"Construction costs are still high in relation to prices on the secondary market and the number of verified new homes sold remains relatively low," says Robert Boije, chief economist at SBAB, in a press release.
