STOCKHOLM, June 20 (Reuters) - Sweden’s economy will slow this year and next as housing investment drops off, the National Institute of Economic Research (NIER) said on Wednesday in a fresh forecast.
“Housing investment... has begun to drop back in the second quarter this year,” the government agency said in a statement.
“The predicted decline in housing investment means that growth in investment as a whole will slow considerably next year and make no contribution at all to GDP growth.”
GDP is seen growing by 2.4 percent this year and 1.9 percent next year. In the previous forecast, in March, then NIER saw growth of 2.8 percent and 2.1 percent respectively.
With growth slowing the central bank will wait until spring 2019 to start hiking rates, the NIER said. (Reporting by Stockholm Newsroom; Editing by Simon Johnson)