(Corrects data in fourth paragraph to 3.2 percent from 3.3 percent.)
STOCKHOLM, June 21 (Reuters) - Sweden's economy will continue to grow at a healthy pace in coming years and underlying inflation will rise to just below the central bank's target, the National Institute of Economic Research (NIER) said on Wednesday.
GDP is expected to expand by 2.5 percent in 2017 and 2.4 in 2018, the government agency said in a forecast.
In the previous forecast, in March, the agency forecasted growth of 2.5 percent and 2.1 percent respectively.
The economy expanded 3.2 percent in 2016.
The NIER also said underlying inflation is seen at 1.9 percent in 2017 but dropping to 1.7 percent in 2018 when the central bank has said it will start raising rates. The Riksbank targets 2 percent inflation. (Reporting by Johan Sennero)