SEB warns of economic overheating

SEB bank's chief economist, Klas Eklund, has issued a warning for overheating in the Nordic region.

In its latest economic report, the bank predicts that Sweden’s Gross National Product (GNP) will grow by 4.2 percent this year and 3.3 percent in 2008.

Open unemployment is expected to drop from 4.5 to 4.0 percent in 2008.

SEB anticipates that the Riksbank will gradually raise interests rates to 4.75 percent by the end of next year.

The bank also estimates that consumer prices will increase by 1.1 percent this year and 1.7 percent next year.