Swedes face big hit if rates rise

Swedes could take a big hit if house prices were to fall sharply, or if interest rates were to climb, a report by credit rating agency Fitch Ratings says.

Sweden was listed by Fitch as the fifth most vulnerable country due to a combination of overvalued property and high consumer debt.

Several years of skyrocketing house prices and heavy borrowing means the economy could find itself in a tight spot if the situation were to change suddenly.

New Zealand, Denmark, the UK and Norway were in a more vulnerable position than Sweden, while house prices were lowest compared to incomes in Japan, Germany and the Netherlands.