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SEB: Swedish household borrowing continues to grow pretty fastFriday, 27 January 2012
Swedes household loan mountain continues to grow at an increasingly slower pace. In December the rate of increase came to 5.2 percent. However, SEB's Chief Economist wants it to shrinks further.
In December Swedes saw their loan portfolio grow by 5.2 percent to Skr2649 billion. This means that only one point can be attached to the sloping curve which represents household lending in Sweden.
AdvertisementIn comparison, lending to households grew by more than 10 percent a month during most of the period 2005 to 2008.
Mortgage lending, which constitutes the bulk of the loan portfolio, grew by 5.6 percent to Skr2124 billion in December. That is a decrease of 0.2 percentage points compared with the previous month.
SEB's Chief Economist, Robert Bergqvist has previously said that a growth rate of loans of between 4 and 5 percent will be in line with nominal GDP growth, is the level that is sustainable, which is equivalent to the risk of bubbles in the economy being less.
Are we there now?: "We are moving in the right direction towards levels that in the long term sustainability, but Sweden can for a period be below what is a sustainable level because we have a number of past years been above," had said according to the Swedish business daily Dagens Industri and traces that we have not seen the end of the slowdown.
Statistic Sweden figures also show that lending to non-financial corporations increased by 1.8 percent at the end of last year to Skr1825 billion.
By Scancomark.se Team
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