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Swedish economy set for strong, broad-based growth: report

Published tisdag 9 maj kl 11.55
Income inequality in Sweden has been rising since 1980.
Income inequality in Sweden has been rising since 1980. Credit: Fredrik Sandberg/TT

Sweden's economy is set for strong, broad-based growth according to a report released today by the SEB bank, although "production bottlenecks" will limit growth.

The report forecast GDP growth of 3.1 per cent this year, and 2.6 per cent in 2018.

The 2018 figure was a "slight upward revision of our earlier already optimistic forecast," SEB said in a statement.

"The government will take advantage of the very favourable fiscal situation - annual budget surpluses of 0.6 per cent of GDP and government debt that will fall by 4 percentage points to 38 per cent of GDP - and will unveil an election budget this autumn with an expansionary direction," the report concluded.

Sweden's next general election will be held in September 2018.

Production bottlenecks would limit growth, the report warned; adding that Sweden's central bank, the Riksbank, would find it difficult to achieve its two per cent inflation target due in part to sluggish wage growth.

House prices and household debt had also begun to accelerate, the report said.

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