Swedish Business Group Unusually Optimistic on Economy as Growth Picks Up

Ahead of the upcoming major wage hike, the employers' organisation is optimistic about the Swedish economy.

"Growth is expected to amount to 2.9 percent this year and 2.7 percent in 2027. These are high growth rates in an international perspective," the Confederation of Swedish Enterprise writes in an economic update.

After a prolonged recession, things are now turning around, according to the organisation. The indicator shows a positive value for the first time in four years.

But chief economist Sven-Olov Daunfeldt raises some warning flags. Some proposals that have gained traction in the election campaign are harmful to the economy. And then several interest rate hikes threaten.

"Swedish households are interest-rate sensitive, so this is a risk factor for the economy," he says in a comment.