GDP growth rate for 2019 is expected to land at 1.6 per cent. It beats the bank’s economists in its report Nordic Outlook published once in the quarter. The figure is a hefty downward revision compared with the previous quarter, when it predicted growth of 2.2 per cent.
the Slowdown in the housing market are described as the main cause. Large range of newly built residential properties, mainly in the big cities, speaks for the further price drops following last year’s stabilization. According to the bank’s forecast for house prices to fall 3-4%, resulting in a total decline of about 10 per cent since the peak in 2017.
keep inflation up during the spring, but are then expected to fall back below 1.5 per cent. This indicates that the Riksbank is content with a rate hike per year, writes the bank. At the end of 2019 is expected the repo rate remain at 0.25 per cent.
A certain amount of optimism lurking yet in the report, then the economists believe that expansionary fiscal policy, continued low interest rates and a weak exchange rate can prevent a recession. The unemployment rate is expected to level out around 6% and in 2020 is expected to the economy to gear up again when the negative contribution from housing construction waned.
Newly-built apartments in Stockholm cheaper than the old
