The National Institute of Economic Research believes that international trade conflicts and the uncertainty surrounding Brexit are weighing on the global economy, and that it is affecting Swedish exports.

A significantly lower inflation rate as well as increased unemployment make the economic climate tough. The Riksbank is therefore not expected to be able to raise interest rates until 2022, KI writes.

KI expects unemployment to rise to 7.1 percent in 2020, and believes that GDP growth will slow down and will be 0.8 percent in 2020.