With consumers turning cautious and house building in decline, SEB has lowered its GDP growth forecast for Sweden, expecting the economy to grow by 2.2 per cent in 2018 and 2019 respectively. In its previous forecast, the bank had predicted growth of 2.9 per cent in 2018 and 2.4 per cent in 2019.
The bank’s economists say that the labour market remains strong and the unemployment rate will fall, from 6.7 per cent in 2017 to 6.3 per cent in 2018 and 2019.
Like many others, the Confederation of Swedish Enterprise predicts that GDP growth has peaked and the economy will slow in the coming years. The employer organisation forecasts GDP growth of 2.4 per cent in 2018 and 1.7 per cent in the next two years.
“Growth per capita is down at the same low levels as in the problematic years in the 1970s and 80s. This is partly attributable to the large increase in the population, but also to weak productivity growth,” says the Confederation.
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