“Aftermath of recent years’ price increases and high interest rates have meant that the recovery in household consumption has been slower than expected,” they write in a press release.
However, it is believed that the low inflation and lower interest rates will increase household consumption at the end of 2024, according to the institute’s latest economic forecast.
At the same time, the Riksbank is expected to gradually lower the key interest rate to 1.75 percent by next summer.
KI estimates that unemployment will peak this year at 8.4 percent, and that it will decrease in the coming years.