The Swedish central bank, the Riksbank, has raised its 2007 GDP growth forecast to 3.1 pct from 2.8 pct, it said in its latest quarterly inflation report. For 2008 and 2009 it expects GDP growth of 2.7 pct and 2.2 pct respectively. It said GDP growth in Sweden and abroad remained high during the first six months of this year and was stronger than anticipated. "Growth is also expected to be relatively strong for the remainder of this year and during next year. However, the economy will gradually move into a calmer phase," it added. Consumer price inflation is expected to reach 2.2 pct in one year's time, and 1.9 pct in two years, with the "The fact that inflation is expected to be slightly below target two years ahead is partly due to energy prices temporarily muting the rate of price increase. When the restraining effect of the energy prices abates, inflation will rise," it said. It said there have been clear improvements in the Swedish labour market during the year and there are many indications that employment will continue to rise.