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Swedish Growth Revised Upwards

The National Institute of Economic Research has raised its Swedish growth forecast for the next two years.

The institute says the current strong upswing means growth this year of 2.7 percent, rising to 3.6 percent next year, and 3.1 percent in 2007. Its latest report forecasts Swedish unemployment will drop from its current 5.9 percent to 4.4 percent in 2007.

The institute says low inflation has meant the central bank could keep interest rates down, with the current record low repo rate of 1.5 percent. This, the report says, should rise to 3.5 percent in two years.

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