Sweden GDP likely to slowdown in 2016

Due to the housing investments settle into a more sustainable trajectory, markets expect minor slowdown in GDP growth in 2016. Underlying conditions are still comforting, with strong population and labour force growth. In the coming two years, higher taxes and low incomes to take their charge on private consumption expenditure and housing investments.

In the nut shell, the public consumption and services exports have developed more strongly than previously forecast by market for 2015. Apart from this higher-than-expected public consumption is due to migration- and integration-related costs.