"What primarily presses growth is falling investments in the business sector – particularly housing investments – and weak household consumption", the bank writes in a new prognosis.
GDP is expected to grow by 2.3 per cent next year, mainly due to increased consumption from households.
The fact that growth is so weak right now should be a reason for the Swedish Central Bank to lower the interest rate three times this year, according to SBAB.
"We now have a situation where most of the factors that contributed to pulling up inflation are out of the game", says Robert Boije, chief economist at SBAB, in a press release.
Regarding the housing market, they foresee that housing prices will fall back somewhat during the autumn, among other things due to the large supply that still prevails. The prognosis is, however, very uncertain, notes SBAB. Prices are expected to rise by nearly 5 per cent during the whole of 2024.
