Productivity gains lowered Swedish inflation

The rapid rise in Swedish productivity growth between 2002 and 2006 is an important explanation for low inflation, said Svante berg, a deputy governor at the Riksbank.

"In Sweden, strong productivity growth and an increased share of imports from low-cost countries in recent years have contributed to low inflation," said berg. "This made it possible for the Riksbank to cut its interest rate and hold it down in a situation where the economy was expanding rapidly."

Productivity growth in the

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