Growth forecast differs

At a Centre for Business and Policy Studies (SNS) seminar on Friday, Kerstin af Jochnick, deputy governor of the Riksbank, said the bank’s growth forecast for the Swedish economy was broadly positive, not withstanding rising household debt, and that the GDP growth forecast of 2.9% for 2015 and 3.6% for 2015 remained on course. She also predicted that inflation would reach the 2% target by the year-end.

SEB’s Robert Bergqvist does not share the Riksbank’s optimistic forecast, and says, “Stronger growth does not necessarily mean that inflation will go up,” and cites idle production capacity and global price pressure as to reasons for this.