By Gustav Sandstrom

STOCKHOLM--Sweden's economy will normalize in coming years although economic growth is likely to remain below average in 2013, Riksbank Governor Stefan Ingves said Thursday.

The rate of inflation is gradually moving towards the central bank's targeted 2% level while unemployment is expected to fall towards 6%-7% following a slight rise in the current year, Mr. Ingves said during a hearing at the Swedish parliament's Finance Committee.

Swedish households' indebtedness is likely to flatten out, but it would be good for economic stability if it would come down, Mr. Ingves said.

The policy interest rate will probably remain unchanged in the course of the coming year, he added, repeating the Riksbank's earlier outlook.

The Swedish central bank in its latest interest rate decision last month kept the main policy rate unchanged at 1% and said it would leave the rate steady for about a year, after which it would be gradually raised.

Economic growth in Sweden has slowed since 2011 as demand for its exports, which contribute half of Sweden's gross domestic product, has fallen across Europe. But recent sentiment indicators, such as the purchasing managers' index, have suggested a brighter outlook.

The Swedish krona has strengthened recently against currencies including the euro and the dollar.

However, Mr. Ingves Thursday said the real SEK exchange rate development, taking into account the price trends in Sweden and abroad, is not remarkable.

At 1009 GMT, the Swedish krona was trading at SEK8.30 against the euro.

Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com