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Swedish households wealthier than ever

Vivian Tse · 20 Dec 2010, 15:39

Published: 20 Dec 2010 15:39 GMT+01:00

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All asset classes, including housing, interest and shares, increased in value, while the debt ratio, or household debt relative to assets, is currently around 27 percent, Swedish bank SEB announced in its savings barometer for the third quarter presented on Monday.

"The strong stock market and the continued rise in housing prices are a couple of explanations for the increase in wealth during the quarter," wrote SEB private economist Gunilla Nyström in a statement on Monday.

During the quarter, the Stockholm Stock Exchange rose 9.7 percent, while Swedish housing prices increased 0.9 percent.

The net worth of Swedish households reached its highest nominal levels ever in the quarter, but have not yet reached the previous peak achieved in the second quarter of 2007 in actual terms.

In terms of valuation in kronor, households as a group have never been richer than they are now. However, in real terms, current levels of cumulative capital are still about 20 billion kronor shy of the total household wealth levels reached in the summer of 2007.

However, household loans continued to grow strongly during the quarter, increasing 8.3 percent from last year, the same level as the previous quarter.

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"Sweden has strong growth, unemployment is falling back, the stock market has risen and a large majority of households believe in rising or stagnant house prices," said Nyström.

"In this environment, The ROT deduction for home renovations is attractive and the still-low interest rates for households to take out new loans for renovations," she added.

Vivian Tse (vivian.tse@thelocal.se)

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Your comments about this article

18:09 December 20, 2010 by ontheball
Keep pumping the bubble. Everything's going to be just fine! Keep pumping..
18:26 December 20, 2010 by Nemesis
Yup, good idea, emulate Dublin.

Keep it up. Crash your economy.

State everything is wonderful because you are still at least 50cm away from the wall which you are travelling towards, at 200 Kilometers Per Hour.

Did anyone in Sweden even notice, when the Swedish economy crashed in the 90's?
18:37 December 20, 2010 by BCR
how is this freaking possible?

I just don't get it!!

Who comes up with this data?
20:12 December 20, 2010 by Mb 65
Until you sell your house and live on the streets that money is dead. it's the same with shares until you have sold them at a profit you have no profit and if a crash comes you will have nothing.
10:11 December 21, 2010 by Nemesis
Does the author of this article not realise that most of this so called wealth is built upon debt.

Most of that debt is external to Sweden, due to the Swedish banking system.

Eventually that debt has to be repaid.
12:49 December 21, 2010 by Thebinary1
Kanske man måste prata i Svenska så dom förstå vad ni alla prata om!
14:40 December 21, 2010 by Roy E
Few children means more money for the 'household'

Of course the downside is that few children means no future.
12:36 December 22, 2010 by andreasbe

I see you spuing a lot of F.U.D on this website, Whats your angle?

To All lese, Just a quick remark Intrest = Proffit, offcorce the banks want the intrest rate to go up.

I say keep the intrest rate down and stimulate the economy. hell im planning on buying a house next year when I move back to Sweden .!
19:54 December 23, 2010 by mkvgtired
This is very misleading. When talking about statistics like this they should use per capita rates. Cumulative wealth might have went up but you cant tell if individual households are better off if they dont tell you if the number (and size) of the households went up/down/stayed the same.
07:56 January 2, 2011 by landofthesheeple
They meant to say "Royal Swedish Housholds".

It is a travisty that the Swedish taxpayer foot the bill for example;

The recent wedding for the crown princess and her "Boxter" looking boyfriend.

The Royal family has their own private money, and using taxpayer funds to restore a church for that wedding was gross misapropriation of funds. This should be a proscecutable offense and they should be sued by the taxpayers to return all the money that was taken.

There a far more important issues that the tax money could have been used for in Sweden.

Also, to save more tax money, Sweden could end the monarchy and replace them with actors at scale wages, like Disneyland does for it's tourists having actors dress up like some of the Snow White storybook characters.
14:22 January 3, 2011 by Don-Griz
How is this possible? Well, just maybe they are smart enough to properly regulate their economy and not simply to leave it in the hands of foreign bankers and toxic "assets" to destroy as they did in America and elsewhere.
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