The [Swedish] economy has lost momentum, but is set to recover gradually as world trade picks up and as stronger exports and improving business confidence spark a revival in business investment, the OECD said in its November report.

The unemployment rate is projected to continue to fall, but with ample spare capacity inflation will remain subdued.

Monetary policy should therefore remain accommodative while measures to enhance financial stability and address risks linked to high household debt need to be developed further. Fiscal policy, against the backdrop of sound public finances, is set to be appropriately slightly stimulative in 2014. Efforts to avoid unemployment becoming entrenched should continue.