Booming economy set to slow
Most indications are that the Swedish economy peaked in the first half of 2018 and is heading into a slowdown phase, but the output gap will remain positive for the following two years. Investment, especially in housing, has made a major contribution to demand growth but will decrease slightly in 2019. The labour market remains strong, although employment growth is set to slow. Wages in both the business sector and the economy as a whole are expected to pick up slightly. The Riksbank will begin to raise interest rates from early 2019 but only very gradually. Such are the results of the latest