Sweden's strong growth numbers hide underlying weaknesses, Swedbank said in its new report on the country's economy.

"Growth in the Swedish economy was higher than we expected during the first half-year at 1.8% on an annual basis, according to preliminary data from Statistics Sweden. Moreover, the gains were broad-based and comprised most sectors of the economy.

"However, underlying data point to a number of weaknesses which suggest that the economy will probably slow during the rest of 2012. Investment goods exports developed weakly and household spending on durable goods fell. Investment growth, aside from large projects in the energy sector, also declined.

"As a result, we see a need for policies that further support for the economy. Most importantly, monetary policy should remain expansive with further easing, in addition to which targeted fiscal measures should be taken to reduce unemployment".