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NIER raises Sweden 2016 growth forecast

Staff writer ▼ | June 23, 2016
The Swedish economy is set to continue its strengthening this year and next, the National Institute of Economic Research said.
Swedish economy
Sweden   Unemployment rate increased in May
The think tank raised the growth forecast for the Swedish economy this year to 3.4 percent from 3.3 percent.

The growth projection for next year, however, was lowered further to 2.3 percent from 2.6 percent. Similarly, the forecast for 2018 was cut to 1.9 percent from 2 percent.

Swedish consumer confidence improved more-than-expected in June, recovering from a slump in the previous month, survey data from the National Institute of Economic Research showed Wednesday.

The consumer confidence index rose to 98.7 from a revised 96.5 in May. Economists had expected the reading to climb to 96.5 from May's initial score of 96.

However, a below-100 score suggests that consumers remain pessimistic about the outlook for the Swedish economy. Households were relatively upbeat about their personal finances, the think tank said.

Sweden's unemployment rate increased in May, the labor force survey from Statistics Sweden showed Wednesday.

The jobless rate rose to 7.6 percent from 7.3 percent in April. It was forecast to remain unchanged in May.

The number of unemployed totaled 400,000 compared to 381,000 in the previous month. At the same time, employment increased 63,000 from prior year to 4.89 million.