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Swedish housing investment growth seen grinding to a halt in 2017
[STOCKHOLM] Swedish housing investments will probably grow by just one per cent in 2017, down from an expected eight per cent in 2016 and an estimated final reading of 18 per cent in 2015, new forecasts from the Swedish Construction Federation showed on Wednesday.
The levelling off is expected in spite of a big housing shortage in Sweden, which has pushed property prices to record levels, while overcrowding is harming integration of Sweden's many immigrants.
"We see that the underlying driver, in the form of increased demand from financially strong households, decreases," economist Johan Deremar said in a statement.
Overall construction investments were also seen rising by one per cent in 2017, following four per cent growth in 2016 and nine per cent in 2015.
The lobby group said it expected a relatively strong uptick for the Swedish economy ahead, but added that this to a large extent would be a result of rapid population growth and an extremely expansive monetary policy, while underlying business demand remains depressed.