"Households' purchasing power will be further strengthened going forward as a result of lower inflation, tax cuts and falling interest expenses, which will provide an injection into consumption and the Swedish economy," says Swedbank's Chief Economist Mattias Persson in a press release.
In its forecast for the coming years, "Swedbank economic outlook", the bank writes that the labor market will strengthen in 2026 as the Swedish economic recovery gains momentum. The Swedish economy is expected to grow by 2.4 percent next year and 2.2 percent in 2027.
Swedbank predicts that the Riksbank will leave the key interest rate unchanged until the end of 2027, when they expect an interest rate increase.
"Although growth now appears to be picking up, resource utilization is low and it will take time before the situation in the labor market normalizes. We therefore expect the Riksbank to leave the policy rate unchanged at 1.75 percent until the end of 2027," says Swedbank's Chief Economist Mattias Persson in a press release.
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