Unusually high Swedish household savings rate

Monday, 21 May 2012
Financial savings of Swedish households amounted to Skr 31 billion during the first quarter. This is an unusually high figure for a first quarter. The increase in debts has continued to slow down and households continued to save in bank accounts.

Statistics Sweden (SCB) in a recent study write on Monday that as usual, a large part of households' assets were from insurance savings, that comprise one-third of households' total assets. Insurance savings increased by Skr40 billion, but this is somewhat lower than in the first quarters of recent years. Since 2008 when wealth taxation was abolished, households' bank savings have been at a lower level during the first quarter compared the other quarters of the year.

During the first quarter households' holdings in bank accounts increased by Skr 9 billion. This was an unusually large inflow, and the increase was the largest during a first quarter since wealth taxation was abolished.

During the first three months of this year, households continued to take out new loans at a higher rate than they paid off their loans, SCB continues. This led to an increase in loans of Skr 27 billion.

However, the increase in loans was the lowest in eight years. Above all, households' increase in loans continued to decrease with housing credit institutions. During the first quarter households' loans with housing credit institutions increased by Skr11 billion. The total annual growth rate increase for all types of loans is now at 5 percent. In 2008 the growth rate increase was 10 percent.
News source, Statistic Sweden / Scancomark.se

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