Monetary Policy Report 2007:1
description
Transcript of Monetary Policy Report 2007:1
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Monetary Policy Report
2007:1
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1. Repo rate with uncertainty bandsPer cent
Source: The Riksbank
0
1
2
3
4
5
6
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-100
1
2
3
4
5
690%75%50%Repo rate
Note. Broken lines represent the Riksbank’s forecast.
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2. GDP with uncertainty bandsAnnual percentage change
Sources: Statistics Sweden and the Riksbank
0
1
2
3
4
5
6
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-100
1
2
3
4
5
690 %75 %50 %GDP
Note. Broken lines represent the Riksbank’s forecast.
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3. CPI with uncertainty bandsAnnual percentage change
Sources: Statistics Sweden and the Riksbank
-1
0
1
2
3
4
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10-1
0
1
2
3
490%75%50%CPI
Note. Broken lines represent the Riksbank’s forecast.
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4. UND1X with uncertainty bandsAnnual percentage change
Sources: Statistics Sweden and the Riksbank
-1
0
1
2
3
4
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10-1
0
1
2
3
490%75%50%UND1X
Note. Broken lines represent the Riksbank’s forecast.
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5. Actual and trend labour productivityAnnual percentage change, seasonally adjusted data
Note. Trend calculated using a Hodrick-Prescott filter. Broken lines represent the Riksbank’s forecast.
Sources: Statistics Sweden and the Riksbank
-2
-1
0
1
2
3
4
5
6
81 83 85 87 89 91 93 95 97 99 01 03 05 07 09-2
-1
0
1
2
3
4
5
6Outcome, MPR 2007:1HP-trend
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6. GDPQuarterly changes in per cent, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-0.25
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
94 96 98 00 02 04 06 08 10-0.25
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75Inflation Report 2006:3MPR 2007:1
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7. Number of hours workedIndex 2002 Q 1 = 100
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
92
94
96
98
100
102
104
106
108
02 03 04 05 06 07 08 09 1092
94
96
98
100
102
104
106
108Inflation Report 2006:3MPR 2007:1
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8. Number of employed and number of people in the labour force
Thousands, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
3800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800
81 83 85 87 89 91 93 95 97 99 01 03 05 07 093800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800Labour Force, MPR 2007:1Number of employed, MPR 2007:1
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9. Proportion of open unemployed and total unemployed
Percentage of the labour force, seasonally adjusted data
Sources: The National Labour Market Board, Statistics Sweden and the Riksbank
0
2
4
6
8
10
12
14
16
81 83 85 87 89 91 93 95 97 99 01 03 05 07 090
2
4
6
8
10
12
14
16Open unemploymentTotal unemploymed
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10. Household consumption, disposable income and saving ratio
Annual percentage change and percentage of disposable income
Sources: Statistics Sweden and the RiksbankNote. Broken lines and striped bars represent the Riksbank’s forecast.
-1
0
1
2
3
4
5
6
7
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09-2
0
2
4
6
8
10
12
14Consumption (left scale)Disposable income (left scale)Saving ratio (right scale)
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11. InvestmentsPer cent of GDP
Sources: Statistics Sweden and the RiksbankNote. Dots represent the Riksbank’s forecast for the full year.
0
5
10
15
20
25
30
80 82 84 86 88 90 92 94 96 98 00 02 04 06 080
5
10
15
20
25
30TotalBusiness sector excluding housing
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12. GDP in the United States and the euro area
Quarterly change in per cent
Sources: Eurostat, the US Department of Commerce and the Riksbank
-0.5
0.0
0.5
1.0
1.5
2.0
01 02 03 04 05 06 07 08 09 10-0.5
0.0
0.5
1.0
1.5
2.0Euro areaUSA
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13. Real house prices and private consumption in the United States
Annual percentage change
Sources: Office of Federal Housing Enterprise Oversight and the US Department of Commerce
-8
-6
-4
-2
0
2
4
6
8
10
12
90 92 94 96 98 00 02 04 06-8
-6
-4
-2
0
2
4
6
8
10
12Real house pricesPrivate consumption
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14. Swedish exports and export market index for goods
Annual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-10
-5
0
5
10
15
20
81 85 89 93 97 01 05 09-10
-5
0
5
10
15
20Swedish exportsExport market index for goods
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15. TCW exchange rateIndex, 18 November 1992 = 100
Source: The RiksbankNote. Broken lines represent the Riksbank’s forecast.
120
122
124
126
128
130
132
134
136
138
140
02 03 04 05 06 07 08 09 10120
122
124
126
128
130
132
134
136
138
140OutcomeInflation Report 2006:3MPR 2007:1
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16. Nominal hourly wagesAnnual percentage change
Sources: National Mediation Office and the Riksbank
0
1
2
3
4
5
6
7
8
94 96 98 00 02 04 06 080
1
2
3
4
5
6
7
8Public sectorBusiness sector
Note. Dots represent the Riksbank’s forecast.
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17. Unit labour costs for the economy as a whole
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines and striped bars represent the Riksbank’s forecast.
-1
0
1
2
3
4
5
6
7
8
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09-1
0
1
2
3
4
5
6
7
8Unit labour costProductivityHourly labour cost
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18. UND1X and CPIAnnual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-1
0
1
2
3
4
00 01 02 03 04 05 06 07 08 09 10-1
0
1
2
3
4CPIUND1X
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19. UND1X excluding energyAnnual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0
1
2
3
4
00 01 02 03 04 05 06 07 08 09 100
1
2
3
4UND1X excluding energyForecast, MPR 2007:1Forecast, Inflation Report 2006:3
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20. Rep rate forecast and implied forward rates based ongovernment securities on
different occasionsPer cent
Source: The Riksbank
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
04 05 06 07 08 091.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5Repo rateRepo rate forecast, MPR 2007:1Daily listing 5 February 2007Repo rate assumption, Inflation Report 2006:315-day average up to 14 December 2006
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Table 1. InflationAnnual percentage change
Sources: Statistics Sweden and The Riksbank Note. The assessment in the October Inflation Report is stated in parentheses.
Annual average 12-month rate 2005 2006 2007 2008 2009 Mar. 07 Mar. 08 Mar. 09 Mar. 10 CPI 0.5 1.4 (1.3) 1.5 (2.0) 2.1 (1.9) 2.1 1.5 (1.7) 2.0 (2.1) 2.1 (1.9) 2.1 UND1X 0.8 1.2 (1.2) 0.7 (1.3) 1.6 (1.6) 1.9 1.0 (1.3) 1.3 (1.4) 1.9 (1.9) 2.0 UND1X excl. energy 0.5 0.5 (0.5) 1.2 (1.3) 1.7 (2.0) 2.0 1.0 (1.0) 1.7 (1.9) 1.9 (2.1) 2.2
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Table 2. Key figuresAnnual percentage change unless otherwise specified
Sources: IMF, Intercontinental Exchange, National Mediation Office, Statistics Sweden and The Riksbank
Note. The assessment in the October Inflation Report is stated in parentheses.
Key figures 2005 2006 2007 2008 2009 GDP, world 4.9 5.0 (5.1) 4.7 (4.7) 4.4 (4.4) 4.2 (4.2) Crude oil price Brent, USD/barrel, annual average
54 65 (65) 57 (65) 60 (66) 59 (65)
Exchange rate, TCW index, annual average 128.3 127.4 (127.7) 124.0 (125.4) 123.2 (124.1) 122.6 (123.1) Repo rate, per cent, annual average 1.7 2.2 (2.2) 3.4 (3.2) 3.6 (3.6) 3.7 (3.7) General government net lending, percentage of GDP
2.7 2.9 (2.8) 2.7 (2.3) 2.6 (2.2) 2.4 (2.0)
GDP, Sweden 2.9 4.5 (4.3) 3.5 (3.1) 2.9 (2.7) 2.5 (2.2) Persons in employment 0.5 1.9 (1.9) 2.1 (1.1) 0.9 (0.8) 0.5 (0.4) Open unemployment, per cent of labour force
5.9 5.4 (5.4) 5.1 (5.4) 4.8 (5.1) 4.6 (4.9)
Hourly wage in economy as a whole 3.1 3.2 (3.4) 3.8 (3.8) 3.9 (3.9) 4.0 (3.9)
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21. Repo rate assumptionsPer cent
Source: The Riksbank
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
04 05 06 07 08 09 100.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0Higher interest rate scenarioLower interest rate scenarioMain scenario
Note. Broken lines represent the Riksbank’s forecast.
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22. UND1XAnnual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
04 05 06 07 08 09 100.0
0.5
1.0
1.5
2.0
2.5
3.0Higher interest rate scenarioLower interest rate scenarioMain scenario
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23. GDPAnnual percentage change, seasonally adjusted
data
0
1
2
3
4
5
6
04 05 06 07 08 09 100
1
2
3
4
5
6Higher interest rate scenarioLower interest rate scenarioMain scenario
Sources: Statistics Sweden and the Riksbank
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24. Number of hours workedAnnual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
3,0
04 05 06 07 08 09 10-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
3,0Higher interest rate scenarioLower interest rate scenarioMain scenario
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25. Open unemploymentPercentage of labour force, seasonally adjusted data
3,0
3,5
4,0
4,5
5,0
5,5
6,0
6,5
7,0
7,5
98 99 00 01 02 03 04 05 06 07 08 09 103,0
3,5
4,0
4,5
5,0
5,5
6,0
6,5
7,0
7,5Higher interest rateLower interest rateMain scenario
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
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26. Average number of hours worked per year
Hours per inhabitant, aged 16-64
1150
1170
1190
1210
1230
1250
98 99 00 01 02 03 04 05 06 07 08 09 101150
1170
1190
1210
1230
1250Higher interest rateLower interest rateMain scenario
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
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27. Employment ratePer cent
70
72
74
76
78
80
98 99 00 01 02 03 04 05 06 07 08 09 1070
72
74
76
78
80Lower interest rateLower interest rateMain scenario
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
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28. Estimated labour market gapsPercentage deviation from HP trend
Sources: Statistics Sweden and the Riksbank
-3
-2
-1
0
1
2
3
98 99 00 01 02 03 04 05 06 07 08 09 10-3
-2
-1
0
1
2
3Higher interest rate scenarioLower interest rate scenarioMain scenario
Note. Broken lines represent the Riksbank’s forecast.
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29. Estimated output gapsPercentage deviation from HP trend
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-3
-2
-1
0
1
2
3
98 99 00 01 02 03 04 05 06 07 08 09 10-3
-2
-1
0
1
2
3Higher interest rate scenarioLower interest rate scenarioMain scenario
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30. Nominal wages, scenario with higher wages
Annual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0
1
2
3
4
5
6
04 05 06 07 08 09 100
1
2
3
4
5
6Nominal wage, Higher wagesNominal wage, Main scenario
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31. GDP, scenario with higher wagesAnnual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0
1
2
3
4
5
6
04 05 06 07 08 09 100
1
2
3
4
5
6GDP, Higher wagesGDP, Main scenario
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32. Repo rate, scenario with higher wagesPer cent
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0
1
2
3
4
5
6
04 05 06 07 08 09 100
1
2
3
4
5
6Repo rate, Higher wages
Repo rate, Main scenario
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33. UND1X, scenario with higher wages Annual percentage change
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
04 05 06 07 08 09 10-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5UND1X, Higher wagesUND1X, Main scenario
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34. GDP, scenario with lower international growth
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0
1
2
3
4
5
6
04 05 06 07 08 09 100
1
2
3
4
5
6GDP, Lower international growthGDP, Main scenario
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35. UND1X, scenario with lower international growth
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
04 05 06 07 08 09 10-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0UND1X, Lower international growthUND1X, Main scenario
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36. Repo rate, scenario with lower international growth
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Broken lines represent the Riksbank’s forecast.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
04 05 06 07 08 09 100.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0Repo rate, Scenario with lower international growthRepo rate, Main scenario
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37. GDPAnnual percentage change
Sources: Eurostat, OECD and the US Department of Commerce
0
1
2
3
4
5
98 99 00 01 02 03 04 05 060
1
2
3
4
5
OECDUSAEuro area
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38. Employment and private consumption in the United States
Annual percentage change
Sources: Bureau of Labor Statistics and US Department of Commerce
-2
-1
0
1
2
3
4
5
6
98 99 00 01 02 03 04 05 06 07-2
-1
0
1
2
3
4
5
6Private consumptionEmployment
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39. Purchasing managers index in the United States
Index, unchanged activity = 50
Source: Institute for Supply Management
40
45
50
55
60
65
70
98 99 00 01 02 03 04 05 06 0740
45
50
55
60
65
70Service sectorManufacturing industry
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40. Economic indicators for the euro areaIndex, 2000 = 100, and annual percentage change
Sources: European Commission and OECD
88
90
92
94
96
98
100
102
104
106
108
110
112
02 03 04 05 06-1
0
1
2
3
4
5
6
7
8
9
10
11European Commission Economic Sentiment (left scale)OECD Composite Leading Indicators (right scale)
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41. Confidence indicators for the manufacturing industry in the euro area,
France and GermanyBalance
Source: European Commission
-30
-25
-20
-15
-10
-5
0
5
10
15
20
98 99 00 01 02 03 04 05 06 07-30
-25
-20
-15
-10
-5
0
5
10
15
20GermanyFranceEuro area
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42. Oil price, Brent crudeUSD per barrel
Sources: Intercontinental Exchange and the Riksbank
Note. Forward rates are calculated as a 15-day average. Broken lines represent the Riksbank’s forecast.
0
10
20
30
40
50
60
70
80
97 98 99 00 01 02 03 04 05 06 07 08 09 100
10
20
30
40
50
60
70
80OutcomeInflation Report 2006:3Forwards, average up to 5 February 2007Forwards, average up to 16 October 2006
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43. CPIAnnual percentage change
Source: OECD
0
1
2
3
4
5
98 99 00 01 02 03 04 05 06 070
1
2
3
4
5
EuroareaOECDUSA
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44. Rep rate forecast and implied forward rates based on government securities
Per cent
Source: The Riksbank
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
04 05 06 07 08 091.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5Repo rateRepo rate forecast, MPR 2007:1Daily listing 5 February 2007Repo rate assumption, Inflation Report 2006:315-day average up to 14 December 2006
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45. Repo rate forecast and implied forward rates
based on government securities, bank securities
and expectations regarding the repo ratePer cent
Sources: DG ECFIN - Directorate General for Economic and Financial Affairs
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
04 05 06 07 08 091.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5Repo rate Repo rate forecast, MPR 2007:1Based on bank securities/FRA 5 February 2007Based on government securities 5 February 2007Survey average (Prospera), 17 January 2007
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46. Monetary policy expectations in the euro area
and the United StatesPer cent
Source: The Riksbank
0
1
2
3
4
5
6
04 05 06 07 080
1
2
3
4
5
6RefiRefi 2007-02-05Refi 2006-10-16Fed FundsFed Funds 2007-02-05Fed Funds 2006-10-16
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47. Long-term interest ratesPer cent
Source: The RiksbankNote. Government bonds with approximately 10 years left to maturity.
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-072.5
3.0
3.5
4.0
4.5
5.0
5.5SwedenUSAGermany
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48. Exchange rate movementsSEK/EUR and SEK/USD
Source: The Riksbank
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-076.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0SEK/EURSEK/USD
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49. TCW exchange rateIndex, 18 November 1992 = 100
Source: The Riksbank
120
122
124
126
128
130
132
134
136
Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07120
122
124
126
128
130
132
134
136
OutcomeInflation report 2006:3Outcome 4th quarter 2006 and forecast 1st quarter 2007
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50. Share indexes in Sweden, the United States
and the euro areaIndex, 1 January 1999 = 100
Source: Reuters Ecowin
40
60
80
100
120
140
160
180
200
220
99 00 01 02 03 04 05 06 0740
60
80
100
120
140
160
180
200
220OMX, SwedenS&P 500, USADAGS 30, Germany
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51. Money supplyAnnual percentage change
Sources: Statistics Sweden and the Riksbank
-4
-2
0
2
4
6
8
10
12
14
16
18
20
99 00 01 02 03 04 05 06-4
-2
0
2
4
6
8
10
12
14
16
18
20M0M2M3
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52. House prices and total lending to Swedish households
Annual percentage change
Sources: Statistics Sweden and the Riksbank
0
2
4
6
8
10
12
14
97 98 99 00 01 02 03 04 05 060
2
4
6
8
10
12
14
Lending to householdsProperty prices
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53. GDP: outcome and the Riksbank’s forecast, and forecasts based on indicator
modelsQuarterly changes in per cent, seasonally adjusted
data
Sources: Statistics Sweden and the Riksbank
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
03 04 05 06 070.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6GDP according to NA 2006:3Forecast GDP, MPR 2007:1GDP according to NA 2006:2Forecast GDP, IR 2006:3Indicator, MPR 2007:1
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54. Retail sales and household consumption
Annual percentage change
Sources: National Institute of Economic Research and Statistics Sweden
-4
-2
0
2
4
6
8
10
94 96 98 00 02 04 06-4
-2
0
2
4
6
8
10Retail salesTotal household consumptionHousehold consumption of retail goods
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55. Gross fixed capital formation Annual percentage change
Sources: Statistics Sweden and the Riksbank
-40
-30
-20
-10
0
10
20
30
94 95 96 97 98 99 00 01 02 03 04 05 06-40
-30
-20
-10
0
10
20
30Business sector excluding housingPublic authoritiesHousing
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56. Foreign trade with goods at fixed prices
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the RiksbankNote. Three-month moving average
-15
-10
-5
0
5
10
15
01 02 03 04 05 06-15
-10
-5
0
5
10
15ExportImport
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57. Household expectations of the futureBalance
Source: National Institute of Economic Research
-60
-40
-20
0
20
40
60
94 96 98 00 02 04 06-60
-40
-20
0
20
40
60Swedish economyPersonal financesUnemployment
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58. Households’ disposable income and saving ratio
Annual percentage change and percentage of disposable income
Sources: Statistics Sweden and the RiksbankNote. Broken lines and striped bars represent the Riksbank’s forecast.
-2
0
2
4
6
8
10
12
94 96 98 00 02 04 06-2
0
2
4
6
8
10
12Disposable income, MPR 2007:1Disposable income, Inflation report 2006:3Saving ratio, Inflation Report 2006:3Saving ratio, MPR 2007:1
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59. General government net lending
Sources: Statistics Sweden and the Riksbank
-10
-8
-6
-4
-2
0
2
4
6
94 96 98 00 02 04 06-10
-8
-6
-4
-2
0
2
4
6Net lendingCyclically adjusted net lending
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60. Number of employed and number of people in the labour force
Expressed in thousands and as a percentage of the labour force, seasonally adjusted data
Sources: Statistics Sweden and the Riksbank
3800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800
94 95 96 97 98 99 00 01 02 03 04 05 063800
3900
4000
4100
4200
4300
4400
4500
4600
4700
4800Labour force, MPR 2007:1Number of employed, MPR 2007:1
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61. Vacancies and redundancy noticesThousands, seasonally adjusted data
Source: National Labour Market Board
0
10
20
30
40
50
60
70
80
81 83 85 87 89 91 93 95 97 99 01 03 050
3
6
9
12
15
18
21
24New job vacancies, seasonally adjusted data (left scale)Unfilled vacancies, seasonally adjusted data (left scale)Redundancy notices (right scale)
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62. Hiring plans and number of employed in the business sector
Balance and annual percentage change
Sources: National Institute of Economic Research, Statistics Sweden and the Riksbank
-30
-20
-10
0
10
20
30
97 98 99 00 01 02 03 04 05 06 07-6
-4
-2
0
2
4
6Hiring plans, NIER’s quaterly business Tendency Survey (left scale)Number of employed, National Accounts (right scale)
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63. Labour productivity for the economy as a whole
Annual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the Riksbank
-2
-1
0
1
2
3
4
5
6
81 83 85 87 89 91 93 95 97 99 01 03 05-2
-1
0
1
2
3
4
5
6Outcome, Inflation Report 2006:3Outcome, MPR 2007:1HP-trend
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64. Estimated gapsPercentage deviation from the trend
Sources: Statistics Sweden and the Riksbank
-5
-4
-3
-2
-1
0
1
2
3
4
5
81 83 85 87 89 91 93 95 97 99 01 03 05-5
-4
-3
-2
-1
0
1
2
3
4
5GDPHoursEmployment
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65. Capacity utilisation in industry according to Statistics Sweden and the
National Institute of Economic Research Per cent, seasonally adjusted data
Sources: National Institute of Economic Research and Statistics Sweden
75
80
85
90
95
81 83 85 87 89 91 93 95 97 99 01 03 0575
80
85
90
95Statistics Sweden, actual capacity utilisation in industryNIER, current capacity utilisation in manufacturing
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66. Proportion of firms reporting a shortage of labour
Per cent, seasonally adjusted data
Sources: National Institute of Economic Research
-10
0
10
20
30
40
50
60
70
80
91 93 95 97 99 01 03 05-10
0
10
20
30
40
50
60
70
80Manufacturing sectorConstruction sectorRetail tradePrivate services sector
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67. Wages in the construction, industry and private services sectors
Annual percentage change
Sources: National Mediation Office, Statistics of Sweden and the Riksbank
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
00 01 02 03 04 05 062.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0IndustryConstruction sectorService sectors
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68. Employment ratePercentage of the population aged 16-64
Sources: Statistics Sweden and the Riksbank
70
72
74
76
78
80
82
84
86
81 83 85 87 89 91 93 95 97 99 01 03 0570
72
74
76
78
80
82
84
86Proportion of employed
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69. Unit labour costsAnnual percentage change, seasonally adjusted data
Sources: Statistics Sweden and the Riksbank
-1
0
1
2
3
4
5
6
00 01 02 03 04 05 06-1
0
1
2
3
4
5
6Unit labour cost, PPR 2007:1Unit labour cost, Inflation Report 2006:3.Productivity, PPR 2007:1Productivity, Inflation Report 2006:3Hourly labour cost, PPR 2007:1Hourly labour cost, Inflation Report 2006:3
Note. Broken lines and striped bars for 2006 represent the Riksbank’s forecast.
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70. Profits in the business sector according to NA
Percentage of value added
Sources: Statistics Sweden and the Riksbank
36
38
40
42
44
46
48
50
81 83 85 87 89 91 93 95 97 99 01 03 0536
38
40
42
44
46
48
50
Note. Broken lines represent the Riksbank’s forecast.
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71. Different agents’ expectations of inflation two years ahead
Annual percentage change
Source: Prospera Research AB
0
1
2
3
4
96 97 98 99 00 01 02 03 04 05 06 070
1
2
3
4Purchasing managersSocial partnersMoney market agents
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72. UND1X and CPIAnnual percentage change
Source: Statistics Sweden
-1
0
1
2
3
4
00 01 02 03 04 05 06-1
0
1
2
3
4UND1XCPI
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73. Energy prices in CPIAnnual percentage change
Sources: Statistics Sweden and the Riksbank
-20
-15
-10
-5
0
5
10
15
20
25
30
00 01 02 03 04 05 06-20
-15
-10
-5
0
5
10
15
20
25
30Oil products in CPIElectricity prices in CPI
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74. UND1X excluding energy broken down into goods, services and food
Annual percentage change
Sources: Statistics Sweden and the Riksbank
-2
-1
0
1
2
3
4
5
6
00 01 02 03 04 05 06-2
-1
0
1
2
3
4
5
6Goods excluding food and energy (27%)Services (45%)Food (18%)
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75. Import prices on consumer goods for producers and TCW exchange rate
Annual percentage change
Sources: Statistics Sweden and the Riksbank
-10
-5
0
5
10
15
00 01 02 03 04 05 06-10
-5
0
5
10
15TCW exchange rateImport prices of consumer goods in the producer sector
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76. Different measures of underlying inflation
Annual percentage change
Sources: Statistics Sweden and the Riksbank
-1
0
1
2
3
4
00 01 02 03 04 05 06-1
0
1
2
3
4UND1XUND1X excluding energyUND24TRIM85
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B1. Repo rateDeviation, Per cent
Source: The Riksbank
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
0.30
1 3 5 7 9 11 13 15 17 19 21Quarter
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
0.30
Note. Deviation calculations, also known as impulse responses, from RAMSES.
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B2. UND1XDeviation, Per cent
Source: The Riksbank
-0.25
-0.20
-0.15
-0.10
-0.05
0.00
0.05
1 3 5 7 9 11 13 15 17 19 21Quarter
-0.25
-0.20
-0.15
-0.10
-0.05
0.00
0.05
Note. Deviation calculations, also known as impulse responses, from RAMSES.
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B3. GDP growthDeviation, Per cent
Source: The Riksbank
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
1 3 5 7 9 11 13 15 17 19 21Quarter
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
Note. Deviation calculations, also known as impulse responses, from RAMSES.
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B4. Level of GDPDeviation, Per cent
Source: The Riksbank
-0.18
-0.16
-0.14
-0.12
-0.10
-0.08
-0.06
-0.04
-0.02
0.00
1 3 5 7 9 11 13 15 17 19 21Quarter
-0.18
-0.16
-0.14
-0.12
-0.10
-0.08
-0.06
-0.04
-0.02
0.00
Note. Deviation calculations, also known as impulse responses, from RAMSES.
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Table B1. Comparison of different inflation measures
Annual percentage change and standard deviation
Source: The Riksbank
Annual average Standard deviation 2006 1995-2006 1995-2006* 2006 1995-2006 1995-2006*
CPI 1.4 1.1 1.3 1.2 1.0 1.0 UND1X 1.2 1.5 1.7 0.3 0.8 0.8 UNDIMPX -0.2 0.2 0.5 1.2 1.3 1.3 UNDIMPX excl. oil -0.8 -0.2 0.2 0.5 1.5 1.5 UNDINHX 1.8 2.1 2.3 0.5 1.0 1.0 *Measure for inflation for the period 1995-2004 calculated using the method used up to 1 January 2005 and which for 2005-2006 calculated according to the new method.
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B5. Forecasts for CPI-inflation at different points of time in 2006
Annual average
Sources: Consensus Economics Inc., the Ministry of Finance, the Swedish Trade Union Confederation, Statistics Sweden and the Riksbank
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan-05 Jul-05 Jan-06 Jul-060.0
0.5
1.0
1.5
2.0
2.5
3.0The RiksbankMedian excl. TheRiksbankHighest/lowest forecastOutcome
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B6. Forecasts for GDP growth at different points of time in 2005, the Riksbank and
other forecastersAnnual average
Sources: Consensus Economics Inc., the Ministry of Finance, the Swedish Trade Union Confederation, Statistics Sweden and the Riksbank
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Jan-04 Jul-04 Jan-05 Jul-050.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0The RiksbankMedian, excl. the RiksbankHighest/lowest forecastOutcome
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B7. A comparison of forecast errors, the Riksbank and other forecasters
Average forecast error CPI inflation 2006
Sources: Consensus Economics Inc. and the Riksbank
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7Th
e Riks
bank
Sven
ska
Hand
elsba
nken SEB
Econ
omist
Inte
llige
nce U
nit
NIER
SBAB
Swed
bank
Mor
gan
Stan
ley
Mer
rill L
ynch
Nord
ea
Hags
tröm
er&
Qvib
erg
Öhm
an
JP M
orga
n
UBS
ING
Finan
cial
Mar
kets
Conf
eder
atio
n of
Swed
ish En
terp
rise
Skan
diab
anke
n
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
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B8. A comparison of forecast errors, the Riksbank and other forecasters
Average forecast error GDP growth 2005
Sources: Consensus Economics Inc. and the Riksbank
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7M
erril
l Lyn
ch
Öhm
an
SBAB
Nord
ea
Econ
omist
Inte
llige
nce U
nit
Sven
ska
Hand
elsba
nken
Skan
diab
anke
n
SEB
JP M
orga
n
ING
Finan
cial
Mar
kets
Hags
tröm
er&
Qvib
erg
NIER
The R
iksba
nk UBS
Mor
gan
Stan
ley
Swed
bank
Conf
eder
atio
n of
Sw
edish
Ente
rpris
e
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
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B9. Unit labour cost and productivity in the business sector
Annual percentage change
Note. Broken lines and striped bars represent the Riksbank’s forecast. Calendar-adjusted data Sources: Statistics Sweden and the Riksbank
-2
0
2
4
6
8
94 95 96 97 98 99 00 01 02 03 04 05 06-2
0
2
4
6
8Unit labour costProductivity
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B10. Producer prices for consumer goods according to the home market price index
(HMPI) and import price index (IMPI)Annual percentage change
Source: Statistics Sweden
-6
-4
-2
0
2
4
6
8
10
94 95 96 97 98 99 00 01 02 03 04 05 06-6
-4
-2
0
2
4
6
8
10HMPIIMPI
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B11. The inflation outcome and inflation in the absence of shocks to productivity growth according to the Riksbank’s
macroeconomic modelAnnual percentage change
Sources: Statistics Sweden and the Riksbank
0
1
2
3
4
00 01 02 03 04 05 060
1
2
3
4OutcomeModel
Note. UND1X inflation.
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B12. Different agents’ expectations of inflation for 2008 in 2006
Per cent
Source: Prospera Research AB
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2006, q 1 2006, q 2 2006, q 3 2006, q 40.0
0.5
1.0
1.5
2.0
2.5
3.0Money market agentsEmployer organisationsEmployee organisationsPurchasing managers, tradePurchasing managers, manufacturing
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Table A1. InflationAnnual percentage change
Sources: Statistics Sweden and The Riksbank
2005 2006 2007 2008 2009 UND1X 0.8 1.2 (1.2) 0.7 (1.3) 1.6 (1.6) 1.9 Changes in mortgage interest expenditure* -0.4 0.1 (0.1) 0.8 (0.7) 0.5 (0.4) 0.3 Changes in indirect taxes and subsidies* 0.2 0.1 (0.1) 0.1 (0.1) 0.1 (0.1) -0.1 =CPI 0.5 1.4 (1.3) 1.5 (2.0) 2.1 (1.9) 2.1
Annual average 12-month rate 2005 2006 2007 2008 2009 Mar. 07 Mar. 08 Mar. 09 Mar. 10 CPI 0.5 1.4 (1.3) 1.5 (2.0) 2.1 (1.9) 2.1 1.5 (1.7) 2.0 (2.1) 2.1 (1.9) 2.1 UND1X 0.8 1.2 (1.2) 0.7 (1.3) 1.6 (1.6) 1.9 1.0 (1.3) 1.3 (1.4) 1.9 (1.9) 2.0 UNDINHX 1.0 1.8 (1.9) 1.5 (2.3) 2.2 (2.2) 2.7 2.0 (2.5) 1.7 (1.9) 2.7 (2.7) 2.9 UNDIMPX 0.2 -0.2 (-0.2) -1.0 (-0.9) 0.4 (0.2) 0.1 -1.0 (-1.0) 0.5 (0.4) 0.1 (0.1) 0.1
*Contribution to CPI inflation, percentage points
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Table A2. International conditionsAnnual percentage change
Sources: IMF, Intercontinental Exchange, OECD and the Riksbank
GDP 2005 2006 2007 2008 2009
United States 3.2 3.4 (3.4) 2.8 (2.7) 2.9 (2.9) 3.1 (3.1) Japan 1.9 2.2 (2.8) 2.0 (2.2) 1.8 (1.8) 1.5 (1.5) Euro area 1.5 2.7 (2.6) 2.2 (2.0) 2.1 (2.0) 2.0 (1.9) OECD 2.6 3.2 (3.2) 2.7 (2.6) 2.7 (2.6) 2.6 (2.6) World 4.9 5.0 (5.1) 4.7 (4.7) 4.4 (4.4) 4.2 (4.2) CPI United States 3.4 3.2 (3.5) 2.1 (2.6) 2.5 (2.5) 2.5 (2.5) Japan -0.6 0.2 (0.6) 0.4 (0.6) 0.7 (0.7) 0.7 (0.7) Euro area (HICP) 2.2 2.2 (2.3) 2.0 (2.2) 1.9 (1.9) 1.9 (1.9) OECD 2.6 2.6 (2.7) 2.2 (2.4) 2.3 (2.2) 2.1 (2.1) Swedish export market growth 6.9 9.7 (11.0) 7.0 (7.0) 6.5 (6.3) 6.1 (6.0) International producer prices 3.4 3.8 (4.0) 2.8 (3.4) 2.0 (2.2) 1.9 (2.0) Crude oil price, USD/barrel Brent 54 65 (65) 57 (65) 60 (66) 59 (65)
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Table A3. Interest rate, exchange rates and public financesPer cent, annual average
Sources: Statistics Sweden and the Riksbank
2005 2006 2007 2008 2009 Repo rate 1.7 2.2 (2.2) 3.4 (3.2) 3.6 (3.6) 3.7 (3.7) 10-year rate 3.4 3.7 (3.8) 4.2 (4.3) 4.6 (4.7) 4.9 (4.9) Exchange rate, TCW index, 19 November 1992=100 128.3 127.4 (127.7) 124.0 (125.4) 123.2 (124.1) 122.6 (123.1) General government net lending* 2.7 2.9 (2.8) 2.7 (2.3) 2.6 (2.2) 2.4 (2.0) *Per cent of
GDP
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Table A4. GDP and GDP by expenditureAnnual percentage change
Sources: IMF, Intercontinental Exchange, OECD and the Riksbank
2005 2006 2007 2008 2009 Private consumption 2.4 2.9 (3.3) 3.7 (3.6) 3.7 (3.5) 3.2 (2.9) Public consumption 0.3 1.5 (1.8) 1.4 (1.4) 0.8 (0.8) 0.8 (0.6) Gross fixed capital formation 8.1 7.6 (8.6) 3.5 (3.6) 3.5 (3.3) 2.9 (2.2) Inventory investments* -0.1 0.2 (-0.3) 0.4 (0.3) 0.1 (0.1) 0.0 (0.0) Exports 6.6 8.6 (8.2) 6.9 (6.5) 6.2 (6.0) 5.7 (5.5) Imports 6.9 7.2 (7.1) 7.6 (7.5) 7.0 (6.9) 6.2 (6.0) GDP 2.9 4.5 (4.3) 3.5 (3.1) 2.9 (2.7) 2.5 (2.2) *Change in per cent of GDP
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Table A5. Output, employment and unemployment
Annual percentage change
Sources: National Labour Market Board, Statistics Sweden and the Riksbank
2005 2006 2007 2008 2009 Population, aged 16-64 0.6 1.0 (0.7) 0.7 (0.7) 0.4 (0.4) 0.2 (0.2) GDP, calendar-adjusted 2.9 4.7 (4.5) 3.6 (3.2) 2.8 (2.6) 2.6 (2.2) Number of hours worked, calendar-adjusted
0.6 2.1 (1.8) 1.8 (1.3) 0.8 (0.6) 0.5 (0.3)
Number of employed 0.5 1.9 (1.9) 2.1 (1.1) 0.9 (0.8) 0.5 (0.4) Labour force 0.5 1.3 (1.3) 1.9 (1.1) 0.6 (0.5) 0.3 (0.1) Open unemployment* 5.9 5.4 (5.4) 5.1 (5.4) 4.8 (5.1) 4.6 (4.9) Labour market programmes* 2.7 3.1 (3.1) 2.0 (2.2) 1.4 (1.6) 1.5 (1.6) *Per cent of labour force
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Table A6. Wages, productivity and unit labour costs
for the economy as a wholeAnnual percentage change
Sources: National Mediation Office, Statistics Sweden and the Riksbank
2005 2006 2007 2008 2009 Hourly wage, short-term wage statistics 3.1 3.2 (3.4) 3.8 (3.8) 3.9 (3.9) 4.0 (3.9) Hourly wage, National Accounts 3.1 3.4 (3.6) 4.0 (4.1) 4.2 (4.2) 4.3 (4.2) Employer contributions * -0.1 -0.7 (-0.8) 0.6 (0.8) -0.2 (0.0) -0.2 (0.0) Hourly labour costs, NA 2.9 2.6 (2.8) 4.6 (4.9) 4.0 (4.2) 4.1 (4.2) Productivity 2.3 2.6 (2.7) 1.7 (1.9) 1.9 (1.9) 2.0 (1.9) Unit labour cost 0.6 0.0 (0.0) 2.8 (2.9) 2.1 (2.2) 2.0 (2.2) *Contribution to raise in hourly wage costs, percentage
points
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Table A7. Expected inflation according to various surveys
Per cent, average
Sources: NIER and Prospera Research AB
Expected inflation rate in 1 year 2 years 5 years Money market agents 1.8 (1.9) 2.0 (1.9) 1.9 (2.0)
Employer organisations 1.9 (2.4) 2.1 (2.5) 2.2 (2.5)
Employee organisations 2.0 (1.9) 2.1 (2.2) 2.2 (2.3)
Purchasing managers, trade 2.1 (2.2) 2.2 (2.4) 2.2 (2.3)
Purchasing managers, manufacturing 2.3 (2.3) 2.4 (2.4) 2.4 (2.4)
Households (HIP) in January 2.2 (2.1) Firms (Business Tendency Survey) in January (Oct)
1.9 (1.7)
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Table A8. Repo ratePer cent
Source: The Riksbank
2005 2006 2007 2008 2009 The main scenario 1.7 2.2 3.4 3.6 3.7 Higher interest rates 1.7 2.2 3.6 4.0 4.2 Lower interest rates 1.7 2.2 3.0 3.1 3.2 Higher wages 1.7 2.2 3.5 3.9 4.2 Lower international growth 1.7 2.2 3.2 3.0 2.9
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Table A9. UND1XAnnual percentage change
Sources: Statistics Sweden and the Riksbank
2005 2006 2007 2008 2009 The main scenario 0.8 1.2 0.7 1.6 1.9 Higher interest rates 0.8 1.2 0.6 1.3 1.3 Lower interest rates 0.8 1.2 0.8 2.1 2.5 Higher wages 0.8 1.2 0.9 1.9 2.2 Lower international growth 0.8 1.2 0.5 1.0 1.1
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Table A10. GDPAnnual percentage change, calendar-adjusted data
2005 2006 2007 2008 2009 The main scenario 2.9 4.7 3.6 2.8 2.6 Higher interest rates 2.9 4.7 3.5 2.5 2.3 Lower interest rates 2.9 4.7 3.7 3.0 2.7 Higher wages 2.9 4.7 3.1 2.2 2.1 Lower international growth 2.9 4.7 3.3 2.2 2.2
Sources: Statistics Sweden and the Riksbank
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Table A11. Number of hours workedAnnual percentage change, calendar-adjusted data
2005 2006 2007 2008 2009 The main scenario 0.6 2.1 1.8 0.8 0.5 Higher interest rates 0.6 2.1 1.7 0.6 0.4 Lower interest rates 0.6 2.1 2.0 1.2 0.7
Sources: Statistics Sweden and the Riksbank
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Table A12. Open unemploymentPer cent of labour force
2005 2006 2007 2008 2009 The main scenario 0.6 2.1 1.8 0.8 0.5 Higher interest rates 0.6 2.1 1.7 0.6 0.4 Lower interest rates 0.6 2.1 2.0 1.2 0.7
Sources: Statistics Sweden and the Riksbank