Economic growth is currently slower than average with a 1.3 percent rise in GDP expected this year.
However KI predicts a sharp rise to 2.3 percent GDP growth in 2014, due to rising confidence among households and companies. The oulook is better for companies with domestic sales compared to those dependant on foreign markets.
The economic forecasting institute believes Sweden’s official base interest rate will remain unchanged at 1 percent until 2015 and sees little room for tax cuts ahead of next year’s general election. However the institute writes that tax increases will be needed after 2014.
Unemployment is expected to increase slighly from 8 to 8.2 percent next year.