Sweden is Saving, Crisis in European Countries

Sweden is saving for coming economic problems; the crisis in European countries could affect Sweden indirectly in a not too distant future. Sweden is well equipped for a crisis but may inevitably dodge the economic problems and being affected by the problems that the rest of Europe is facing.

Not in six years has Swedes saved so much during the third quarter as in the year 2012. Households also lowers their risk, they leave assets with high risk, such as stocks, while bank saving has increased.

Household financial savings increased by 15 billion SEK during the third quarter, according to data from state agencies. Financial savings are net transactions in financial assets and liabilities. Not since the third quarter of year 2006 have it been so high for a third quarter.

This is due both to the increase in debt was relatively low during the period and that the assets increased compared to the third quarter in recent years.

The financial assets amounted to 4,106 billion SEK at the third quarter end. Consumer transactions in financial assets were 45 billion SEK, while transactions in financial debt were 30 billion SEK.

Swedes abandoned largely risky assets in favor of safer. Assets such as bonds and shares were sold, while insurance, bank deposits, condominium units and funds increased.

This can be seen as typical economic trends for an uncertain financial period. Households takes a much lower risk just as larger investors seeks safer investments. Investments in equities and equity funds decreases and bank saving and other stable investments increases. One can also see a decreasing borrowing; the loans will not increase at the same rate as before when borrowers see uncertainties on the horizon.

Although Sweden is well equipped for a crisis the country will suffer from the problems that the rest of Europe faces today. When households in the country are saving the local trade will be hurt by lower sales of services and goods. Together with a reduced international purchasing power and exports this can strike hard against Sweden companies in the near future even though the corporate climate is getting better and better every year with reduced taxesand other favorable conditions.