The Confederation predicts Sweden’s growth to be 4.5 percent for the rest of this year, but said a downturn will happen next year with growth dropping to 2.7 percent.
“This year’s growth is the highest it has been since the 70s and we are still counting on a slow down at the end of the year,” said Göran Johansson, an economist at the Confederation. “But 2007 will also be a year dominated by economic growth.”
The new Alliance government’s policies are expected to add another 80,000 jobs for people already in 2006. Some 60,000 of those spots will be in the private sector, in which the construction industry makes up a large portion of the demand. The increase will slow down in 2007, where only an additional 40,000 people will be added to the work force, the Confederation said.
The group’s report said the cumulative effect of the lowered government subsidies and lowered taxes will lead to the employment of an additional 200,000 to 300,000 people in the future.