Economy to strengthen further and peak in 2019
The Swedish economy will continue to strengthen, and the global economic upswing will drive up Swedish exports. High capacity utilisation means that business investment will grow rapidly despite housing investment levelling off. Wage growth will accelerate gradually due to large labour shortages, but inflation will not reach 2 per cent until 2020. The Riksbank will not begin to raise the repo rate until the first quarter of 2019. Unchanged personnel density in the provision of public services such as health care and education will require taxes to be raised or benefits cut by just over SEK 20