Swedbank said in a new report that the outside world makes itself heard, resulting in a rapid slowdown in the Swedish economy and growing unemployment.

“The Swedish economy has underperformed expectations this fall and the slowdown in the euro zone is hurting Swedish growth prospects. Domestic demand is holding up better, especially household consumption.

“The labor market is resilient and employment numbers have not yet begun to drop. A rapidly growing number of layoff announcements suggests, however, that unemployment will rise this winter. Forward-looking confidence indicators point to increased pessimism, mainly in construction and manufacturing.

“This implies that the economic slowdown in the Swedish economy risks becoming more pronounced than we previously expected, and that unemployment will be higher.