Abstract
In this study, economic developments and policies used for the recovery of financial stability of Sweden against global recession are discussed. The low inflation is reached by increasing Riksbank policy rate. The role of fiscal policy council is explained. The Financial Sector Assessment Program (FSAP) recommendations are endorsed on financial institutions. These include merging the stability and deposit insurance funds, establishing a special bank resolution regime, and increasing further the Financial Supervisory Agency’s capacity. Also, the Basel III capital regulations are supported by the authorities.
I. A Strong Recovery
Sweden grew 5½ percent in 2010, a leader among advanced economies
1. Real GDP growth rose at a fast clip from mid-2009, exceeding recoveries elsewhere among advanced economies (Table 1 and Figures 1 & 2). In part this was because the downturn had been cushioned by the krona’s sharp depreciation—from levels that were already somewhat undervalued—boosting exports once global demand began to recover. At the same time, consumption was supported by monetary and fiscal stimulus. Exports have risen by 20 percent, investment by 14 percent and total consumption by 5½ percent since early-2009. And supported by steady lending growth to the household sector, house prices continued rising—even through the financial crisis—contrary to the corrections experienced elsewhere (Figure 3). According to staff’s estimates, the negative output gap, nearly -6 percent in 2009, narrowed to -3 percent in 2010.
Sweden: Selected Economic and Social Indicators, 2005–12
Staff Estimates
Based on relative unit labor costs in manufacturing.
Sweden: Selected Economic and Social Indicators, 2005–12
| Projections | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||
| Real economy (in percent change) | |||||||||
| Real GDP | 3.2 | 4.3 | 3.3 | −0.6 | −5.3 | 5.5 | 4.4 | 3.8 | |
| Domestic Demand | 3.0 | 3.9 | 4.7 | 0.0 | −4.9 | 6.1 | 2.9 | 3.3 | |
| CPI inflation | 0.8 | 1.5 | 1.7 | 3.3 | 2.0 | 1.9 | 3.0 | 2.5 | |
| Unemployment rate (in percent) | 7.6 | 7.0 | 6.1 | 6.2 | 8.3 | 8.4 | 7.4 | 6.6 | |
| Gross national saving (percent of GDP) | 24.5 | 27.2 | 29.6 | 28.9 | 23.4 | 25.0 | 26.0 | 27.0 | |
| Gross domestic investment (percent of GDP) | 17.7 | 18.7 | 20.3 | 20.2 | 16.3 | 18.5 | 20.0 | 21.4 | |
| Output Gap (as a percent of potential) | 4.2 | 5.6 | 5.4 | 1.5 | −5.9 | −3.1 | −1.6 | −0.9 | |
| Public finance (in percent of GDP) | |||||||||
| Total Revenues | 53.8 | 53.0 | 52.5 | 51.9 | 52.1 | 50.7 | 49.3 | 48.6 | |
| Total Expenditures | 51.8 | 50.8 | 46.1 | 46.6 | 49.7 | 47.8 | 45.2 | 44.2 | |
| Overall balance | 1.9 | 2.2 | 3.6 | 2.2 | −0.9 | −0.3 | 0.8 | 1.3 | |
| Structural balance (as a percent of potential GDP)1/ | 3.0 | 1.9 | 1.0 | 0.9 | 1.3 | 1.4 | 1.3 | 1.2 | |
| General government gross debt, official statistics | 50.4 | 45.3 | 40.2 | 38.8 | 42.8 | 39.8 | 36.1 | 32.7 | |
| Gross public debt, Maastricht criterion | 50.2 | 45.0 | 40.0 | 38.3 | 42.1 | … | … | … | |
| Money and credit (12-month, percent change) | |||||||||
| M1 | 9.4 | 11.1 | 9.9 | 4.9 | 8.0 | 7.1 | … | … | |
| M3 | 7.5 | 10.6 | 12.5 | 10.4 | 8.2 | 4.5 | … | … | |
| Credit to non-bank public | 10.8 | 11.2 | 14.3 | 7.7 | … | … | … | … | |
| Interest rates (year average) | |||||||||
| Repo rate | 1.5 | 3.0 | 4.0 | 2.0 | 0.3 | 1.3 | … | … | |
| Three-month treasury bill rate | 1.7 | 2.3 | 3.5 | 3.8 | 0.4 | 0.5 | … | … | |
| Ten-year government bond yield | 3.4 | 3.7 | 4.2 | 3.9 | 3.3 | 2.9 | … | … | |
| Balance of payments (in percent of GDP) | |||||||||
| Current account | 6.8 | 8.4 | 9.2 | 8.7 | 7.0 | 6.3 | 6.0 | 5.7 | |
| Trade balance | 7.2 | 7.8 | 7.2 | 6.6 | 6.6 | 6.0 | 5.8 | 5.4 | |
| Foreign Direct Investment, net | −4.5 | 0.7 | −2.3 | 1.2 | −5.2 | −2.1 | −2.1 | −2.1 | |
| International reserves (in billions of US dollars) | 26.4 | 26.0 | 29.7 | 35.4 | 44.2 | 46.6 | 53.9 | 55.8 | |
| Reserve cover (months of imports of goods and services) | 2.1 | 2.0 | 1.8 | 1.7 | 3.0 | 3.3 | 2.9 | 2.9 | |
| Exchange rate (period average, unless otherwise stated) | |||||||||
| Exchange rate regime | Free Floating Exchange Rate | ||||||||
| Skr per U.S. dollar (June 1, 2011) | 6.15 | ||||||||
| Nominal effective rate (2000=100) | 99.2 | 99.5 | 101.3 | 99.5 | 90.7 | 97.8 | … | … | |
| Real effective rate (2000=100) 2/ | 84.4 | 80.2 | 84.2 | 84.4 | 80.0 | 81.8 | … | … | |
| Fund Position (April 30, 2011) | |||||||||
| Holdings of currency (in percent of quota) | 74.51 | ||||||||
| Holdings of SDRs (in percent of allocation) | 100.74 | ||||||||
| Quota (in millions of SDRs) | 2395.50 | ||||||||
| Social Indicators (reference year) | |||||||||
| GDP per capita (in current PPP US dollars, 2009): 35,805; Income Distribution (ratio of income received by top and bottom quintiles, 2005): 3.3; Life expectancy at birth (2009): 79.3 (males) and 83.3 (female); Automobile ownership (2004): 456 per thousand; CO2 Emissions (tonnes per capita, 2007): 5.4; Population Density (inhabitants per sq. km., 2008): 22; Poverty Rate (share of the population below the established risk-of-poverty line, 2005): 9%. | |||||||||
Staff Estimates
Based on relative unit labor costs in manufacturing.
Sweden: Selected Economic and Social Indicators, 2005–12
| Projections | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||
| Real economy (in percent change) | |||||||||
| Real GDP | 3.2 | 4.3 | 3.3 | −0.6 | −5.3 | 5.5 | 4.4 | 3.8 | |
| Domestic Demand | 3.0 | 3.9 | 4.7 | 0.0 | −4.9 | 6.1 | 2.9 | 3.3 | |
| CPI inflation | 0.8 | 1.5 | 1.7 | 3.3 | 2.0 | 1.9 | 3.0 | 2.5 | |
| Unemployment rate (in percent) | 7.6 | 7.0 | 6.1 | 6.2 | 8.3 | 8.4 | 7.4 | 6.6 | |
| Gross national saving (percent of GDP) | 24.5 | 27.2 | 29.6 | 28.9 | 23.4 | 25.0 | 26.0 | 27.0 | |
| Gross domestic investment (percent of GDP) | 17.7 | 18.7 | 20.3 | 20.2 | 16.3 | 18.5 | 20.0 | 21.4 | |
| Output Gap (as a percent of potential) | 4.2 | 5.6 | 5.4 | 1.5 | −5.9 | −3.1 | −1.6 | −0.9 | |
| Public finance (in percent of GDP) | |||||||||
| Total Revenues | 53.8 | 53.0 | 52.5 | 51.9 | 52.1 | 50.7 | 49.3 | 48.6 | |
| Total Expenditures | 51.8 | 50.8 | 46.1 | 46.6 | 49.7 | 47.8 | 45.2 | 44.2 | |
| Overall balance | 1.9 | 2.2 | 3.6 | 2.2 | −0.9 | −0.3 | 0.8 | 1.3 | |
| Structural balance (as a percent of potential GDP)1/ | 3.0 | 1.9 | 1.0 | 0.9 | 1.3 | 1.4 | 1.3 | 1.2 | |
| General government gross debt, official statistics | 50.4 | 45.3 | 40.2 | 38.8 | 42.8 | 39.8 | 36.1 | 32.7 | |
| Gross public debt, Maastricht criterion | 50.2 | 45.0 | 40.0 | 38.3 | 42.1 | … | … | … | |
| Money and credit (12-month, percent change) | |||||||||
| M1 | 9.4 | 11.1 | 9.9 | 4.9 | 8.0 | 7.1 | … | … | |
| M3 | 7.5 | 10.6 | 12.5 | 10.4 | 8.2 | 4.5 | … | … | |
| Credit to non-bank public | 10.8 | 11.2 | 14.3 | 7.7 | … | … | … | … | |
| Interest rates (year average) | |||||||||
| Repo rate | 1.5 | 3.0 | 4.0 | 2.0 | 0.3 | 1.3 | … | … | |
| Three-month treasury bill rate | 1.7 | 2.3 | 3.5 | 3.8 | 0.4 | 0.5 | … | … | |
| Ten-year government bond yield | 3.4 | 3.7 | 4.2 | 3.9 | 3.3 | 2.9 | … | … | |
| Balance of payments (in percent of GDP) | |||||||||
| Current account | 6.8 | 8.4 | 9.2 | 8.7 | 7.0 | 6.3 | 6.0 | 5.7 | |
| Trade balance | 7.2 | 7.8 | 7.2 | 6.6 | 6.6 | 6.0 | 5.8 | 5.4 | |
| Foreign Direct Investment, net | −4.5 | 0.7 | −2.3 | 1.2 | −5.2 | −2.1 | −2.1 | −2.1 | |
| International reserves (in billions of US dollars) | 26.4 | 26.0 | 29.7 | 35.4 | 44.2 | 46.6 | 53.9 | 55.8 | |
| Reserve cover (months of imports of goods and services) | 2.1 | 2.0 | 1.8 | 1.7 | 3.0 | 3.3 | 2.9 | 2.9 | |
| Exchange rate (period average, unless otherwise stated) | |||||||||
| Exchange rate regime | Free Floating Exchange Rate | ||||||||
| Skr per U.S. dollar (June 1, 2011) | 6.15 | ||||||||
| Nominal effective rate (2000=100) | 99.2 | 99.5 | 101.3 | 99.5 | 90.7 | 97.8 | … | … | |
| Real effective rate (2000=100) 2/ | 84.4 | 80.2 | 84.2 | 84.4 | 80.0 | 81.8 | … | … | |
| Fund Position (April 30, 2011) | |||||||||
| Holdings of currency (in percent of quota) | 74.51 | ||||||||
| Holdings of SDRs (in percent of allocation) | 100.74 | ||||||||
| Quota (in millions of SDRs) | 2395.50 | ||||||||
| Social Indicators (reference year) | |||||||||
| GDP per capita (in current PPP US dollars, 2009): 35,805; Income Distribution (ratio of income received by top and bottom quintiles, 2005): 3.3; Life expectancy at birth (2009): 79.3 (males) and 83.3 (female); Automobile ownership (2004): 456 per thousand; CO2 Emissions (tonnes per capita, 2007): 5.4; Population Density (inhabitants per sq. km., 2008): 22; Poverty Rate (share of the population below the established risk-of-poverty line, 2005): 9%. | |||||||||
Staff Estimates
Based on relative unit labor costs in manufacturing.
Sweden: The Long View, 1996–2011
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ In thousands.Sources: Haver Analytics; Konjunkturinstitutet; Statistics Sweden; and IMF staff calculations.
Sweden: The Long View, 1996–2011
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ In thousands.Sources: Haver Analytics; Konjunkturinstitutet; Statistics Sweden; and IMF staff calculations.Sweden: The Long View, 1996–2011
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ In thousands.Sources: Haver Analytics; Konjunkturinstitutet; Statistics Sweden; and IMF staff calculations.
Sweden: A Strong Recovery, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ Crisis: 2008Q2 -2009Q1; Recovery: 2009Q1 -2010Q4.2/ REER index; 2005 = 100, + = appreciation, - = depreciation.Sources: Haver; INS; and IMF staff calculations.
Sweden: A Strong Recovery, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ Crisis: 2008Q2 -2009Q1; Recovery: 2009Q1 -2010Q4.2/ REER index; 2005 = 100, + = appreciation, - = depreciation.Sources: Haver; INS; and IMF staff calculations.Sweden: A Strong Recovery, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
1/ Crisis: 2008Q2 -2009Q1; Recovery: 2009Q1 -2010Q4.2/ REER index; 2005 = 100, + = appreciation, - = depreciation.Sources: Haver; INS; and IMF staff calculations.
Sweden: Household Balance Sheets and Consumption, 2004–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Eurostat; Haver; Statistics Sweden; and IMF staff calculations.1/ Data for Ireland starts in 2001.
Sweden: Household Balance Sheets and Consumption, 2004–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Eurostat; Haver; Statistics Sweden; and IMF staff calculations.1/ Data for Ireland starts in 2001.Sweden: Household Balance Sheets and Consumption, 2004–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Eurostat; Haver; Statistics Sweden; and IMF staff calculations.1/ Data for Ireland starts in 2001.
The Swedish economy is above pre-crisis levels.
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
The Swedish economy is above pre-crisis levels.
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
The Swedish economy is above pre-crisis levels.
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
2. All this has surprised on the upside (text table).
Real GDP growth forecasts for 2010
(percent)
Published September 2009
Real GDP growth forecasts for 2010
(percent)
| Riksbank, October 2009 MP Report | 2.2 |
| Ministry of Finance, 2010 Budget Bill 1/ | 0.6 |
| IMF, October 2009 WEO | 1.2 |
| Consensus Forecasts, October 2009 | 2.0 |
Published September 2009
Real GDP growth forecasts for 2010
(percent)
| Riksbank, October 2009 MP Report | 2.2 |
| Ministry of Finance, 2010 Budget Bill 1/ | 0.6 |
| IMF, October 2009 WEO | 1.2 |
| Consensus Forecasts, October 2009 | 2.0 |
Published September 2009
3. Total employment has regained pre-crisis levels, with both temporary and permanent employment rising since 2009Q4. But the unemployment rate remains elevated, at close to 8 percent in April 2011, suggesting remaining spare capacity.
4. Momentum continued, albeit slowing somewhat into 2011Q1. GDP rose 0.8 percent quarter-on-quarter, with consumption slowing more markedly. Inventories continued strong increases.
5. With improved macroeconomic conditions, the financial system has regained strength (Tables 2, 3,& 4). Stock market indices are approaching pre-crisis peaks (Figure 4). Money market spreads have remained above pre-crisis levels following the withdrawal of official emergency liquidity support. Bank capital adequacy ratios have strengthened, and bank credit default swap spreads remain well below the average of other European banks.
Sweden: Financial System Structure, 2002–10
Including foreign branches.
Not including minor local companies.
Market value of funds.
Number of institutions is computed on unconsolidated basis.
Sweden: Financial System Structure, 2002–10
| 2002 | 2007 | 2009 | 2010 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Number of branches | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | ||||
| Four Major Banks, consolidated | ||||||||||||||||||||
| Nordea | 1 | 2,284,713 | 24.9 | 93.5 | 1 | 3,679,361 | 24.9 | 117.7 | 1 | 5,212,530 | 30.3 | 162.7 | 1 | 8 | 5,491,917 | 30.7 | 171.4 | |||
| Handelsbanken | 1 | 1,277,514 | 13.9 | 52.3 | 1 | 1,859,382 | 12.6 | 59.5 | 1 | 2,122,843 | 12.3 | 66.2 | 1 | 26 | 2,188,032 | 12.2 | 68.3 | |||
| S.E.B | 1 | 1,241,112 | 13.5 | 50.8 | 1 | 2,344,462 | 15.9 | 75.0 | 1 | 2,308,227 | 13.4 | 72.0 | 1 | 16 | 2,253,779 | 12.6 | 70.3 | |||
| Swedbank | 1 | 957,503 | 10.4 | 39.2 | 1 | 1,607,984 | 10.9 | 51.4 | 1 | 1,794,687 | 10.4 | 56.0 | 1 | 6 | 1,845,932 | 10.3 | 57.6 | |||
| Total Top Four Banks | 4 | 5,760,842 | 62.7 | 235.7 | 4 | 9,491,189 | 64.3 | 303.6 | 4 | 11,438,287 | 66.5 | 357.0 | 4 | 56 | 11,779,660 | 65.9 | 367.6 | |||
| Four major banks in Sweden 1/ | ||||||||||||||||||||
| Banks | 4 | 2,780,140 | 30.3 | 113.8 | 4 | 6,079,039 | 41.2 | 194.5 | 4 | 7,040,183 | 40.9 | 219.7 | 4 | 39 | 7,110,540 | 39.8 | 221.9 | |||
| Insurance companies | 8 | 297,262 | 3.2 | 12.2 | 9 | 529,765 | 3.6 | 16.9 | 8 | 509,691 | 3.0 | 15.9 | 8 | 2 | 531,718 | 3.0 | 16.6 | |||
| Mortgage credit institutions | 3 | 945,606 | 10.3 | 38.7 | 3 | 1,497,436 | 10.1 | 47.9 | 3 | 1,899,919 | 11.0 | 59.3 | 3 | 2 | 1,983,218 | 11.1 | 61.9 | |||
| Securities firms | 3 | 1,181 | 0.0 | 0.0 | 3 | 20,339 | 0.1 | 0.7 | 3 | 30,242 | 0.2 | 0.9 | 3 | 4 | 9,418 | 0.1 | 0.3 | |||
| Other credit market companies | 5 | 107,520 | 1.2 | 4.4 | 9 | 195,326 | 1.3 | 6.2 | 8 | 235,297 | 1.4 | 7.3 | 8 | 11 | 222,816 | 1.2 | 7.0 | |||
| Top four banks in Sweden | 23 | 4,131,709 | 45.0 | 169.1 | 28 | 8,321,905 | 56.4 | 266.2 | 26 | 9,715,332 | 56.5 | 303.2 | 26 | 58 | 9,857,710 | 55.2 | 307.6 | |||
| Other Banks in Sweden | ||||||||||||||||||||
| Of which: | ||||||||||||||||||||
| Banks | 27 | 153,122 | 1.7 | 6.3 | 24 | 404,711 | 2.7 | 12.9 | 30 | 481,797 | 2.8 | 15.0 | 30 | 18 | 509,316 | 2.9 | 15.9 | |||
| Savings banks | 77 | 95,689 | 1.0 | 3.9 | 65 | 146,450 | 1.0 | 4.7 | 53 | 164,177 | 1.0 | 5.1 | 52 | 0 | 170,670 | 1.0 | 5.3 | |||
| Mortgage credit institutions | 11 | 459,923 | 5.0 | 18.8 | 4 | 315,522 | 2.1 | 10.1 | 4 | 436,302 | 2.5 | 13.6 | 4 | 0 | 495,149 | 2.8 | 15.5 | |||
| Member bank | 2 | 878 | 0.0 | 0.0 | 2 | 1,246 | 0.0 | 0.0 | 2 | 1,521 | 0.0 | 0.0 | 2 | 0 | 1,583 | 0.0 | 0.0 | |||
| Other credit market companies | 63 | 368,080 | 4.0 | 15.1 | 45 | 587,840 | 4.0 | 18.8 | 43 | 790,385 | 4.6 | 24.7 | 41 | 30 | 769,463 | 4.3 | 24.0 | |||
| Total other banks in Sweden | 180 | 1,077,692 | 11.7 | 44.1 | 140 | 1,455,769 | 9.9 | 59.6 | 132 | 1,874,182 | 10.9 | 76.7 | 129 | 48 | 1,946,181 | 10.9 | 79.6 | |||
| Nonbank credit institutions | ||||||||||||||||||||
| Insurance companies | 165 | 1,654,032 | 18.0 | 67.7 | 247 | 2,226,389 | 15.1 | 71.2 | 253 | 2,351,945 | 13.7 | 73.4 | 254 | 44 | 2,487,278 | 13.9 | 77.6 | |||
| Life insurance | 38 | 1,289,888 | 14.0 | 52.8 | 45 | 1,678,359 | 11.4 | 53.7 | 43 | 1,782,371 | 10.4 | 55.6 | 44 | 6 | 1,924,131 | 10.8 | 60.0 | |||
| Nonlife insurance 2/ | 127 | 364,144 | 4.0 | 14.9 | 202 | 548,030 | 3.7 | 17.5 | 210 | 569,574 | 3.3 | 17.8 | 210 | 38 | 563,147 | 3.2 | 17.6 | |||
| Pension funds | 12 | 80,251 | 0.9 | 3.3 | 15 | 126,767 | 0.9 | 4.1 | 14 | 105,567 | 0.6 | 3.3 | 13 | 0 | 119,087 | 0.7 | 3.7 | |||
| Mutual funds 3/ | 615 | 565,102 | 6.2 | 23.1 | 793 | 1,416,210 | 9.6 | 45.3 | 849 | 1,393,337 | 8.1 | 43.5 | 878 | 0 | 1,511,564 | 8.5 | 47.2 | |||
| Other nonbank credit institutions | ||||||||||||||||||||
| Asset management firms | 67 | 3,398 | 0.0 | 0.1 | 82 | 8,160 | 0.1 | 0.3 | 82 | 7,346 | 0.0 | 0.2 | 80 | 0 | 7,662 | 0.0 | 0.2 | |||
| Securities firms | 100 | 45,500 | 0.5 | 1.9 | 126 | 40,149 | 0.3 | 1.3 | 132 | 28,895 | 0.2 | 0.9 | 135 | 7 | 14,432 | 0.1 | 0.5 | |||
| Total financial system | 1,143 | 9,186,817 | 100.0 | 375.9 | 1,407 | 14,764,633 | 100.0 | 472.3 | 1,466 | 17,199,559 | 100.0 | 536.8 | 1,493 | 155 | 17,865,864 | 100.0 | 557.6 | |||
| of which: Total banking sector 4/ | 6,838,534 | 74.4 | 279.9 | 10,946,958 | 74.1 | 350.2 | 13,312,469 | 77.4 | 415.5 | 13,725,841 | 76.8 | 428.4 | ||||||||
| Memorundam item: | ||||||||||||||||||||
| Foreign bank branches in Sweden | … | … | … | … | 25 | 753,482 | 5.1 | 24.1 | 24 | 686,265 | 4.0 | 21.4 | 25 | 789,194 | 4.4 | 24.6 | ||||
| Swedish bank branches in abroad | … | … | … | … | 52 | 1,324,288 | 9.0 | 42.4 | 55 | 1,411,402 | 8.2 | 44.0 | 57 | 1,473,498 | 8.2 | 46.0 | ||||
| Employees in the financial system | … | … | … | … | 76,508 | 82,991 | … | |||||||||||||
| Nominal GDP (in millions of SEK) | 2,443,630 | 3,126,018 | 3,089,181 | 3,301,072 | ||||||||||||||||
Including foreign branches.
Not including minor local companies.
Market value of funds.
Number of institutions is computed on unconsolidated basis.
Sweden: Financial System Structure, 2002–10
| 2002 | 2007 | 2009 | 2010 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | Number of institutions | Number of branches | Total assets (in millions of SEK) | Percent of total assets | Percent of GDP | ||||
| Four Major Banks, consolidated | ||||||||||||||||||||
| Nordea | 1 | 2,284,713 | 24.9 | 93.5 | 1 | 3,679,361 | 24.9 | 117.7 | 1 | 5,212,530 | 30.3 | 162.7 | 1 | 8 | 5,491,917 | 30.7 | 171.4 | |||
| Handelsbanken | 1 | 1,277,514 | 13.9 | 52.3 | 1 | 1,859,382 | 12.6 | 59.5 | 1 | 2,122,843 | 12.3 | 66.2 | 1 | 26 | 2,188,032 | 12.2 | 68.3 | |||
| S.E.B | 1 | 1,241,112 | 13.5 | 50.8 | 1 | 2,344,462 | 15.9 | 75.0 | 1 | 2,308,227 | 13.4 | 72.0 | 1 | 16 | 2,253,779 | 12.6 | 70.3 | |||
| Swedbank | 1 | 957,503 | 10.4 | 39.2 | 1 | 1,607,984 | 10.9 | 51.4 | 1 | 1,794,687 | 10.4 | 56.0 | 1 | 6 | 1,845,932 | 10.3 | 57.6 | |||
| Total Top Four Banks | 4 | 5,760,842 | 62.7 | 235.7 | 4 | 9,491,189 | 64.3 | 303.6 | 4 | 11,438,287 | 66.5 | 357.0 | 4 | 56 | 11,779,660 | 65.9 | 367.6 | |||
| Four major banks in Sweden 1/ | ||||||||||||||||||||
| Banks | 4 | 2,780,140 | 30.3 | 113.8 | 4 | 6,079,039 | 41.2 | 194.5 | 4 | 7,040,183 | 40.9 | 219.7 | 4 | 39 | 7,110,540 | 39.8 | 221.9 | |||
| Insurance companies | 8 | 297,262 | 3.2 | 12.2 | 9 | 529,765 | 3.6 | 16.9 | 8 | 509,691 | 3.0 | 15.9 | 8 | 2 | 531,718 | 3.0 | 16.6 | |||
| Mortgage credit institutions | 3 | 945,606 | 10.3 | 38.7 | 3 | 1,497,436 | 10.1 | 47.9 | 3 | 1,899,919 | 11.0 | 59.3 | 3 | 2 | 1,983,218 | 11.1 | 61.9 | |||
| Securities firms | 3 | 1,181 | 0.0 | 0.0 | 3 | 20,339 | 0.1 | 0.7 | 3 | 30,242 | 0.2 | 0.9 | 3 | 4 | 9,418 | 0.1 | 0.3 | |||
| Other credit market companies | 5 | 107,520 | 1.2 | 4.4 | 9 | 195,326 | 1.3 | 6.2 | 8 | 235,297 | 1.4 | 7.3 | 8 | 11 | 222,816 | 1.2 | 7.0 | |||
| Top four banks in Sweden | 23 | 4,131,709 | 45.0 | 169.1 | 28 | 8,321,905 | 56.4 | 266.2 | 26 | 9,715,332 | 56.5 | 303.2 | 26 | 58 | 9,857,710 | 55.2 | 307.6 | |||
| Other Banks in Sweden | ||||||||||||||||||||
| Of which: | ||||||||||||||||||||
| Banks | 27 | 153,122 | 1.7 | 6.3 | 24 | 404,711 | 2.7 | 12.9 | 30 | 481,797 | 2.8 | 15.0 | 30 | 18 | 509,316 | 2.9 | 15.9 | |||
| Savings banks | 77 | 95,689 | 1.0 | 3.9 | 65 | 146,450 | 1.0 | 4.7 | 53 | 164,177 | 1.0 | 5.1 | 52 | 0 | 170,670 | 1.0 | 5.3 | |||
| Mortgage credit institutions | 11 | 459,923 | 5.0 | 18.8 | 4 | 315,522 | 2.1 | 10.1 | 4 | 436,302 | 2.5 | 13.6 | 4 | 0 | 495,149 | 2.8 | 15.5 | |||
| Member bank | 2 | 878 | 0.0 | 0.0 | 2 | 1,246 | 0.0 | 0.0 | 2 | 1,521 | 0.0 | 0.0 | 2 | 0 | 1,583 | 0.0 | 0.0 | |||
| Other credit market companies | 63 | 368,080 | 4.0 | 15.1 | 45 | 587,840 | 4.0 | 18.8 | 43 | 790,385 | 4.6 | 24.7 | 41 | 30 | 769,463 | 4.3 | 24.0 | |||
| Total other banks in Sweden | 180 | 1,077,692 | 11.7 | 44.1 | 140 | 1,455,769 | 9.9 | 59.6 | 132 | 1,874,182 | 10.9 | 76.7 | 129 | 48 | 1,946,181 | 10.9 | 79.6 | |||
| Nonbank credit institutions | ||||||||||||||||||||
| Insurance companies | 165 | 1,654,032 | 18.0 | 67.7 | 247 | 2,226,389 | 15.1 | 71.2 | 253 | 2,351,945 | 13.7 | 73.4 | 254 | 44 | 2,487,278 | 13.9 | 77.6 | |||
| Life insurance | 38 | 1,289,888 | 14.0 | 52.8 | 45 | 1,678,359 | 11.4 | 53.7 | 43 | 1,782,371 | 10.4 | 55.6 | 44 | 6 | 1,924,131 | 10.8 | 60.0 | |||
| Nonlife insurance 2/ | 127 | 364,144 | 4.0 | 14.9 | 202 | 548,030 | 3.7 | 17.5 | 210 | 569,574 | 3.3 | 17.8 | 210 | 38 | 563,147 | 3.2 | 17.6 | |||
| Pension funds | 12 | 80,251 | 0.9 | 3.3 | 15 | 126,767 | 0.9 | 4.1 | 14 | 105,567 | 0.6 | 3.3 | 13 | 0 | 119,087 | 0.7 | 3.7 | |||
| Mutual funds 3/ | 615 | 565,102 | 6.2 | 23.1 | 793 | 1,416,210 | 9.6 | 45.3 | 849 | 1,393,337 | 8.1 | 43.5 | 878 | 0 | 1,511,564 | 8.5 | 47.2 | |||
| Other nonbank credit institutions | ||||||||||||||||||||
| Asset management firms | 67 | 3,398 | 0.0 | 0.1 | 82 | 8,160 | 0.1 | 0.3 | 82 | 7,346 | 0.0 | 0.2 | 80 | 0 | 7,662 | 0.0 | 0.2 | |||
| Securities firms | 100 | 45,500 | 0.5 | 1.9 | 126 | 40,149 | 0.3 | 1.3 | 132 | 28,895 | 0.2 | 0.9 | 135 | 7 | 14,432 | 0.1 | 0.5 | |||
| Total financial system | 1,143 | 9,186,817 | 100.0 | 375.9 | 1,407 | 14,764,633 | 100.0 | 472.3 | 1,466 | 17,199,559 | 100.0 | 536.8 | 1,493 | 155 | 17,865,864 | 100.0 | 557.6 | |||
| of which: Total banking sector 4/ | 6,838,534 | 74.4 | 279.9 | 10,946,958 | 74.1 | 350.2 | 13,312,469 | 77.4 | 415.5 | 13,725,841 | 76.8 | 428.4 | ||||||||
| Memorundam item: | ||||||||||||||||||||
| Foreign bank branches in Sweden | … | … | … | … | 25 | 753,482 | 5.1 | 24.1 | 24 | 686,265 | 4.0 | 21.4 | 25 | 789,194 | 4.4 | 24.6 | ||||
| Swedish bank branches in abroad | … | … | … | … | 52 | 1,324,288 | 9.0 | 42.4 | 55 | 1,411,402 | 8.2 | 44.0 | 57 | 1,473,498 | 8.2 | 46.0 | ||||
| Employees in the financial system | … | … | … | … | 76,508 | 82,991 | … | |||||||||||||
| Nominal GDP (in millions of SEK) | 2,443,630 | 3,126,018 | 3,089,181 | 3,301,072 | ||||||||||||||||
Including foreign branches.
Not including minor local companies.
Market value of funds.
Number of institutions is computed on unconsolidated basis.
Sweden: Financial Soundness Indicators: Banks, 2003–11
From 2007, the calculation of capital base follows rules under Basel II.
On consolidated basis
From 2010 onward, exposures to credit institutions are included.
Sweden: Financial Soundness Indicators: Banks, 2003–11
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 Q1 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital Adequacy | ||||||||||||
| Regulatory capital to risk-weighted assets 1/ | 10.5 | 10.6 | 10.5 | 10.5 | 10.2 | 10.7 | 13.0 | 12.6 | 12.4 | |||
| of which: Four major banks 2/ | 10.0 | 10.1 | 10.1 | 10.0 | 9.8 | 10.2 | 12.7 | 12.0 | 11.7 | |||
| Regulatory Tier I capital to risk-weighted assets 1/ | 8.0 | 8.3 | 7.7 | 7.8 | 7.5 | 8.1 | 10.9 | 11.0 | 11.1 | |||
| of which: Four major banks 2/ | 7.4 | 7.6 | 7.0 | 7.1 | 7.0 | 7.6 | 10.5 | 10.4 | 10.5 | |||
| Capital as percent of assets (leverage ratio) | 5.1 | 4.8 | 4.8 | 4.8 | 4.7 | 4.6 | 5.0 | 4.7 | 4.6 | |||
| of which: Four major banks 2/ | 5.0 | 4.8 | 4.8 | 4.9 | 4.7 | 4.7 | 5.0 | 4.7 | 4.5 | |||
| Asset quality and exposure | ||||||||||||
| Nonperforming loans to total gross loans | 2.0 | 1.2 | 0.9 | 0.8 | 0.6 | 1.1 | 2.0 | 1.9 | 1.7 | |||
| of which: Four major banks 2/ | 1.9 | 1.1 | 0.8 | 0.8 | 0.6 | 1.0 | 2.0 | 1.9 | 1.7 | |||
| Nonperforming loans net of loan-loss provisions to capital | 11.9 | 4.8 | 3.1 | 4.3 | 3.4 | 7.4 | 10.7 | 9.9 | 10.1 | |||
| of which: Four major banks 2/ | 11.5 | 4.0 | 2.7 | 3.9 | 3.1 | 6.5 | 11.0 | 10.6 | 10.7 | |||
| Loan-loss provisions to nonperforming loans | 49.4 | 66.2 | 69.7 | 56.1 | 58.3 | 49.1 | 55.4 | 44.3 | 43.9 | |||
| of which: Four major banks 2/ | 50.3 | 70.6 | 73.6 | 58.0 | 60.4 | 47.1 | 53.7 | 43.8 | 43.2 | |||
| Sectoral distribution of bank credit to the private sector (percent) | ||||||||||||
| Sweden | 57.2 | 56.7 | 53.8 | 54.0 | 52.7 | 44.0 | 46.1 | 50.0 | 49.5 | |||
| Nonfinancial corporations | 24.3 | 23.2 | 21.8 | 20.6 | 20.9 | 19.1 | 18.3 | 18.9 | 18.9 | |||
| Households | 21.5 | 22.1 | 20.6 | 20.6 | 19.0 | 18.1 | 20.4 | 22.1 | 21.7 | |||
| Small personal companies | 6.5 | 6.6 | 6.4 | 6.3 | 6.1 | 5.6 | 6.1 | 6.8 | 6.7 | |||
| Insurance companies | 0.4 | 0.4 | 0.5 | 0.5 | 0.6 | 0.2 | 0.2 | 0.3 | 0.3 | |||
| Others | 4.6 | 4.3 | 4.5 | 6.0 | 6.1 | 1.0 | 1.2 | 1.9 | 1.9 | |||
| Outside Sweden | 42.8 | 43.3 | 46.2 | 46.0 | 47.3 | 55.4 | 50.3 | 46.0 | 46.5 | |||
| Geographical distribution of loans to total loans | ||||||||||||
| Sweden | 63.6 | 47.4 | 45.8 | 48.0 | 48.1 | 48.5 | 48.7 | 50.1 | … | |||
| Nordic countries | 11.9 | 26.7 | 28.2 | 24.4 | 25.9 | 25.4 | 27.8 | 27.9 | … | |||
| Denmark | 6.3 | 12.6 | 13.3 | 8.6 | 9.0 | 8.4 | 10.3 | 11.6 | … | |||
| Finland | 2.4 | 8.0 | 8.2 | 8.3 | 7.8 | 8.4 | 7.9 | 7.5 | … | |||
| Norway | 3.3 | 6.1 | 6.8 | 7.5 | 9.1 | 8.6 | 9.6 | 8.9 | … | |||
| Baltic countries | 2.2 | 2.0 | 3.3 | 5.2 | 5.0 | 5.4 | 4.9 | 4.1 | … | |||
| Estonia | 1.1 | 1.0 | 1.6 | 1.9 | 1.9 | 2.1 | 1.8 | 1.6 | … | |||
| Latvia | 0.4 | 0.4 | 0.8 | 1.7 | 1.5 | 1.6 | 1.4 | 1.2 | … | |||
| Lithuania | 0.7 | 0.6 | 0.9 | 1.5 | 1.6 | 1.8 | 1.6 | 1.3 | … | |||
| Other | 22.3 | 23.9 | 22.6 | 22.5 | 21.0 | 20.6 | 18.6 | 17.9 | … | |||
| Large exposures as percent of tier 1 capital 3/ | 26.4 | 11.1 | 17.5 | 18.3 | 13.4 | 34.1 | 12.3 | 40.2 | … | |||
| of which: Four major banks 3/ | 22.2 | 12.4 | 12.0 | 13.3 | 6.5 | 30.9 | 8.1 | 36.8 | … | |||
| Earnings and profitability | ||||||||||||
| Return on assets (Net income as percent of average total assets) | 0.6 | 0.7 | 0.8 | 0.8 | 0.8 | 0.5 | 0.3 | 0.4 | … | |||
| of which: Four major banks 2/ | 0.6 | 0.7 | 0.7 | 0.8 | 0.8 | 0.6 | 0.2 | 0.5 | 0.4 | |||
| Return on equity (Net income as percent of average equity capital) | 12.5 | 15.9 | 18.1 | 19.9 | 18.5 | 12.7 | 13.0 | 9.8 | … | |||
| of which: Four major banks 2/ | 13.3 | 16.0 | 18.7 | 21.0 | 19.7 | 14.3 | 5.4 | 10.1 | 12.8 | |||
| Net interest income as percent of gross income | 64.4 | 58.9 | 52.4 | 49.2 | 52.4 | 55.2 | 56.8 | 52.7 | 51.0 | |||
| of which: Four major banks 2/ | 64.6 | 59.2 | 52.6 | 49.4 | 52.7 | 56.9 | 57.7 | 55.3 | 54.0 | |||
| Trading income and foreign exchange gains (losses) to gross income | 3.0 | 5.1 | 9.6 | 10.5 | 8.3 | 8.6 | 11.7 | 11.6 | 12.8 | |||
| of which: Four major banks 2/ | 3.5 | 5.4 | 10.0 | 11.2 | 9.6 | 9.8 | 13.6 | 12.6 | 13.4 | |||
| Personnel expenses as percent of noninterest expenses | 54.0 | 53.7 | 56.0 | 57.4 | 57.1 | 55.0 | 53.2 | 52.6 | 54.9 | |||
| of which: Four major banks 2/ | 55.9 | 55.7 | 58.4 | 60.3 | 60.0 | 59.2 | 57.1 | 57.4 | 60.4 | |||
| Liquidity | ||||||||||||
| Liquid assets as percent of total assets | 4.4 | 5.2 | 5.0 | 5.0 | 5.0 | 4.0 | 6.3 | 4.8 | 5.1 | |||
| of which: Four major banks 2/ | 4.4 | 5.3 | 4.6 | 5.1 | 5.4 | 4.3 | 6.7 | 5.2 | 5.4 | |||
| Liquid assets as percent of short-term liabilities | 29.3 | 30.6 | 31.6 | 32.1 | 34.1 | 23.6 | 43.6 | 44.4 | 46.4 | |||
| of which: Four major banks 2/ | 32.1 | 34.7 | 33.3 | 37.5 | 43.8 | 30.5 | 54.7 | 58.9 | 60.8 | |||
| Customer deposits as a percent of total (non-interbank) loans | 50.6 | 52.6 | 50.2 | 53.8 | 51.4 | 46.1 | 47.1 | 47.8 | 47.7 | |||
| of which: Four major banks 2/ | 49.1 | 50.8 | 49.1 | 53.4 | 51.3 | 45.5 | 45.3 | 46.6 | 46.3 | |||
| Noninterbank loans to noninterbank deposits | 142.6 | 130.8 | 137.4 | 135.7 | 139.8 | 139.6 | 144.8 | 154.9 | 155.8 | |||
| of which: Four major banks 2/ | 150.2 | 139.6 | 145.1 | 143.1 | 148.4 | 149.7 | 156.1 | 165.9 | 166.9 | |||
| Foreign exchange risk | ||||||||||||
| Foreign currency-denominated loans as percent of total loans | 19.1 | 18.2 | 21.5 | 23.4 | 26.1 | 28.1 | 27.8 | 26.3 | … | |||
| Foreign currency-denominated assets as percent of total assets | 23.9 | 26.9 | 28.9 | 28.9 | 31.4 | 32.5 | 31.0 | 30.2 | … | |||
| Foreign currency-denominated liabilities as percent of total liabilities | 25.2 | 23.4 | 26.1 | 24.4 | 25.4 | 21.8 | 20.0 | 19.6 | … | |||
| Exposure to derivatives | ||||||||||||
| Gross asset position in derivatives as percent of Tier 1 capital | 152.6 | 176.7 | 164.7 | 110.7 | 132.0 | 336.8 | 210.8 | 222.7 | 192.4 | |||
| Gross liability position in derivatives as percent of Tier 1 capital | 168.2 | 188.5 | 165.2 | 117.3 | 136.1 | 320.7 | 198.9 | 218.3 | 195.8 | |||
From 2007, the calculation of capital base follows rules under Basel II.
On consolidated basis
From 2010 onward, exposures to credit institutions are included.
Sweden: Financial Soundness Indicators: Banks, 2003–11
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 Q1 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital Adequacy | ||||||||||||
| Regulatory capital to risk-weighted assets 1/ | 10.5 | 10.6 | 10.5 | 10.5 | 10.2 | 10.7 | 13.0 | 12.6 | 12.4 | |||
| of which: Four major banks 2/ | 10.0 | 10.1 | 10.1 | 10.0 | 9.8 | 10.2 | 12.7 | 12.0 | 11.7 | |||
| Regulatory Tier I capital to risk-weighted assets 1/ | 8.0 | 8.3 | 7.7 | 7.8 | 7.5 | 8.1 | 10.9 | 11.0 | 11.1 | |||
| of which: Four major banks 2/ | 7.4 | 7.6 | 7.0 | 7.1 | 7.0 | 7.6 | 10.5 | 10.4 | 10.5 | |||
| Capital as percent of assets (leverage ratio) | 5.1 | 4.8 | 4.8 | 4.8 | 4.7 | 4.6 | 5.0 | 4.7 | 4.6 | |||
| of which: Four major banks 2/ | 5.0 | 4.8 | 4.8 | 4.9 | 4.7 | 4.7 | 5.0 | 4.7 | 4.5 | |||
| Asset quality and exposure | ||||||||||||
| Nonperforming loans to total gross loans | 2.0 | 1.2 | 0.9 | 0.8 | 0.6 | 1.1 | 2.0 | 1.9 | 1.7 | |||
| of which: Four major banks 2/ | 1.9 | 1.1 | 0.8 | 0.8 | 0.6 | 1.0 | 2.0 | 1.9 | 1.7 | |||
| Nonperforming loans net of loan-loss provisions to capital | 11.9 | 4.8 | 3.1 | 4.3 | 3.4 | 7.4 | 10.7 | 9.9 | 10.1 | |||
| of which: Four major banks 2/ | 11.5 | 4.0 | 2.7 | 3.9 | 3.1 | 6.5 | 11.0 | 10.6 | 10.7 | |||
| Loan-loss provisions to nonperforming loans | 49.4 | 66.2 | 69.7 | 56.1 | 58.3 | 49.1 | 55.4 | 44.3 | 43.9 | |||
| of which: Four major banks 2/ | 50.3 | 70.6 | 73.6 | 58.0 | 60.4 | 47.1 | 53.7 | 43.8 | 43.2 | |||
| Sectoral distribution of bank credit to the private sector (percent) | ||||||||||||
| Sweden | 57.2 | 56.7 | 53.8 | 54.0 | 52.7 | 44.0 | 46.1 | 50.0 | 49.5 | |||
| Nonfinancial corporations | 24.3 | 23.2 | 21.8 | 20.6 | 20.9 | 19.1 | 18.3 | 18.9 | 18.9 | |||
| Households | 21.5 | 22.1 | 20.6 | 20.6 | 19.0 | 18.1 | 20.4 | 22.1 | 21.7 | |||
| Small personal companies | 6.5 | 6.6 | 6.4 | 6.3 | 6.1 | 5.6 | 6.1 | 6.8 | 6.7 | |||
| Insurance companies | 0.4 | 0.4 | 0.5 | 0.5 | 0.6 | 0.2 | 0.2 | 0.3 | 0.3 | |||
| Others | 4.6 | 4.3 | 4.5 | 6.0 | 6.1 | 1.0 | 1.2 | 1.9 | 1.9 | |||
| Outside Sweden | 42.8 | 43.3 | 46.2 | 46.0 | 47.3 | 55.4 | 50.3 | 46.0 | 46.5 | |||
| Geographical distribution of loans to total loans | ||||||||||||
| Sweden | 63.6 | 47.4 | 45.8 | 48.0 | 48.1 | 48.5 | 48.7 | 50.1 | … | |||
| Nordic countries | 11.9 | 26.7 | 28.2 | 24.4 | 25.9 | 25.4 | 27.8 | 27.9 | … | |||
| Denmark | 6.3 | 12.6 | 13.3 | 8.6 | 9.0 | 8.4 | 10.3 | 11.6 | … | |||
| Finland | 2.4 | 8.0 | 8.2 | 8.3 | 7.8 | 8.4 | 7.9 | 7.5 | … | |||
| Norway | 3.3 | 6.1 | 6.8 | 7.5 | 9.1 | 8.6 | 9.6 | 8.9 | … | |||
| Baltic countries | 2.2 | 2.0 | 3.3 | 5.2 | 5.0 | 5.4 | 4.9 | 4.1 | … | |||
| Estonia | 1.1 | 1.0 | 1.6 | 1.9 | 1.9 | 2.1 | 1.8 | 1.6 | … | |||
| Latvia | 0.4 | 0.4 | 0.8 | 1.7 | 1.5 | 1.6 | 1.4 | 1.2 | … | |||
| Lithuania | 0.7 | 0.6 | 0.9 | 1.5 | 1.6 | 1.8 | 1.6 | 1.3 | … | |||
| Other | 22.3 | 23.9 | 22.6 | 22.5 | 21.0 | 20.6 | 18.6 | 17.9 | … | |||
| Large exposures as percent of tier 1 capital 3/ | 26.4 | 11.1 | 17.5 | 18.3 | 13.4 | 34.1 | 12.3 | 40.2 | … | |||
| of which: Four major banks 3/ | 22.2 | 12.4 | 12.0 | 13.3 | 6.5 | 30.9 | 8.1 | 36.8 | … | |||
| Earnings and profitability | ||||||||||||
| Return on assets (Net income as percent of average total assets) | 0.6 | 0.7 | 0.8 | 0.8 | 0.8 | 0.5 | 0.3 | 0.4 | … | |||
| of which: Four major banks 2/ | 0.6 | 0.7 | 0.7 | 0.8 | 0.8 | 0.6 | 0.2 | 0.5 | 0.4 | |||
| Return on equity (Net income as percent of average equity capital) | 12.5 | 15.9 | 18.1 | 19.9 | 18.5 | 12.7 | 13.0 | 9.8 | … | |||
| of which: Four major banks 2/ | 13.3 | 16.0 | 18.7 | 21.0 | 19.7 | 14.3 | 5.4 | 10.1 | 12.8 | |||
| Net interest income as percent of gross income | 64.4 | 58.9 | 52.4 | 49.2 | 52.4 | 55.2 | 56.8 | 52.7 | 51.0 | |||
| of which: Four major banks 2/ | 64.6 | 59.2 | 52.6 | 49.4 | 52.7 | 56.9 | 57.7 | 55.3 | 54.0 | |||
| Trading income and foreign exchange gains (losses) to gross income | 3.0 | 5.1 | 9.6 | 10.5 | 8.3 | 8.6 | 11.7 | 11.6 | 12.8 | |||
| of which: Four major banks 2/ | 3.5 | 5.4 | 10.0 | 11.2 | 9.6 | 9.8 | 13.6 | 12.6 | 13.4 | |||
| Personnel expenses as percent of noninterest expenses | 54.0 | 53.7 | 56.0 | 57.4 | 57.1 | 55.0 | 53.2 | 52.6 | 54.9 | |||
| of which: Four major banks 2/ | 55.9 | 55.7 | 58.4 | 60.3 | 60.0 | 59.2 | 57.1 | 57.4 | 60.4 | |||
| Liquidity | ||||||||||||
| Liquid assets as percent of total assets | 4.4 | 5.2 | 5.0 | 5.0 | 5.0 | 4.0 | 6.3 | 4.8 | 5.1 | |||
| of which: Four major banks 2/ | 4.4 | 5.3 | 4.6 | 5.1 | 5.4 | 4.3 | 6.7 | 5.2 | 5.4 | |||
| Liquid assets as percent of short-term liabilities | 29.3 | 30.6 | 31.6 | 32.1 | 34.1 | 23.6 | 43.6 | 44.4 | 46.4 | |||
| of which: Four major banks 2/ | 32.1 | 34.7 | 33.3 | 37.5 | 43.8 | 30.5 | 54.7 | 58.9 | 60.8 | |||
| Customer deposits as a percent of total (non-interbank) loans | 50.6 | 52.6 | 50.2 | 53.8 | 51.4 | 46.1 | 47.1 | 47.8 | 47.7 | |||
| of which: Four major banks 2/ | 49.1 | 50.8 | 49.1 | 53.4 | 51.3 | 45.5 | 45.3 | 46.6 | 46.3 | |||
| Noninterbank loans to noninterbank deposits | 142.6 | 130.8 | 137.4 | 135.7 | 139.8 | 139.6 | 144.8 | 154.9 | 155.8 | |||
| of which: Four major banks 2/ | 150.2 | 139.6 | 145.1 | 143.1 | 148.4 | 149.7 | 156.1 | 165.9 | 166.9 | |||
| Foreign exchange risk | ||||||||||||
| Foreign currency-denominated loans as percent of total loans | 19.1 | 18.2 | 21.5 | 23.4 | 26.1 | 28.1 | 27.8 | 26.3 | … | |||
| Foreign currency-denominated assets as percent of total assets | 23.9 | 26.9 | 28.9 | 28.9 | 31.4 | 32.5 | 31.0 | 30.2 | … | |||
| Foreign currency-denominated liabilities as percent of total liabilities | 25.2 | 23.4 | 26.1 | 24.4 | 25.4 | 21.8 | 20.0 | 19.6 | … | |||
| Exposure to derivatives | ||||||||||||
| Gross asset position in derivatives as percent of Tier 1 capital | 152.6 | 176.7 | 164.7 | 110.7 | 132.0 | 336.8 | 210.8 | 222.7 | 192.4 | |||
| Gross liability position in derivatives as percent of Tier 1 capital | 168.2 | 188.5 | 165.2 | 117.3 | 136.1 | 320.7 | 198.9 | 218.3 | 195.8 | |||
From 2007, the calculation of capital base follows rules under Basel II.
On consolidated basis
From 2010 onward, exposures to credit institutions are included.
Sweden: Financial Soundness Indicators: Non-Banks, 2003–10
Sweden: Financial Soundness Indicators: Non-Banks, 2003–10
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Insurance sector | ||||||||||
| Solvency ratio (margin/required margin) | ||||||||||
| Life insurance companies | 9.0 | 8.4 | 11.2 | 13.8 | 14.9 | 8.4 | 7.8 | 11.7 | ||
| Non-life insurance companies | 6.5 | 5.1 | 7.7 | 8.5 | 9.5 | 6.8 | 7.7 | 11.0 | ||
| Households | ||||||||||
| Household debt as percent of GDP | 57.1 | 60.4 | 64.3 | 66.9 | 69.0 | 72.8 | 81.9 | 82.9 | ||
| Household interest expense as percent of disposable income | 5.6 | 5.2 | 4.9 | 5.2 | 6.2 | 7.3 | 4.9 | 4.7 | ||
| Corporate sector | ||||||||||
| Debt stock as percent of GDP (non-financial sector borrowing from | 53.9 | 51.6 | 54.0 | 54.2 | 60.8 | 65.7 | 65.5 | 61.6 | ||
| financial sector) | ||||||||||
| Total debt stock as percent of GDP | 74.5 | 70.4 | 72.5 | 69.4 | 79.4 | 92.6 | 92.3 | 86.8 | ||
| Equity risk | ||||||||||
| OM Stockholm Stock Exchange Index (annual percent change) | −39.7 | 43.2 | 10.6 | 34.9 | 12.9 | −24.0 | −25.1 | 54.4 | ||
| Equity prices of financial institutions (annual percent change) | −23.9 | 27.8 | 29.2 | 30.2 | 9.7 | −25.6 | −52.1 | 98.2 | ||
| Market capitalization in percent of GDP | … | … | 230.5 | 260.8 | 257.2 | 140.7 | 188.5 | 216.2 | ||
| Real estate markets (prices; year on year percent change) | ||||||||||
| One- or two dwelling buildings | 6.1 | 10.0 | 10.5 | 10.5 | 11.3 | −2.0 | 7.1 | 5.2 | ||
| Greater Stockholm region | 0.7 | 8.8 | 9.1 | 11.6 | 15.6 | −3.2 | 5.9 | 6.9 | ||
| Buildings for seasonal and secondary use | 7.9 | 9.4 | 13.7 | 7.6 | 13.3 | −2.8 | 12.2 | 0.9 | ||
Sweden: Financial Soundness Indicators: Non-Banks, 2003–10
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Insurance sector | ||||||||||
| Solvency ratio (margin/required margin) | ||||||||||
| Life insurance companies | 9.0 | 8.4 | 11.2 | 13.8 | 14.9 | 8.4 | 7.8 | 11.7 | ||
| Non-life insurance companies | 6.5 | 5.1 | 7.7 | 8.5 | 9.5 | 6.8 | 7.7 | 11.0 | ||
| Households | ||||||||||
| Household debt as percent of GDP | 57.1 | 60.4 | 64.3 | 66.9 | 69.0 | 72.8 | 81.9 | 82.9 | ||
| Household interest expense as percent of disposable income | 5.6 | 5.2 | 4.9 | 5.2 | 6.2 | 7.3 | 4.9 | 4.7 | ||
| Corporate sector | ||||||||||
| Debt stock as percent of GDP (non-financial sector borrowing from | 53.9 | 51.6 | 54.0 | 54.2 | 60.8 | 65.7 | 65.5 | 61.6 | ||
| financial sector) | ||||||||||
| Total debt stock as percent of GDP | 74.5 | 70.4 | 72.5 | 69.4 | 79.4 | 92.6 | 92.3 | 86.8 | ||
| Equity risk | ||||||||||
| OM Stockholm Stock Exchange Index (annual percent change) | −39.7 | 43.2 | 10.6 | 34.9 | 12.9 | −24.0 | −25.1 | 54.4 | ||
| Equity prices of financial institutions (annual percent change) | −23.9 | 27.8 | 29.2 | 30.2 | 9.7 | −25.6 | −52.1 | 98.2 | ||
| Market capitalization in percent of GDP | … | … | 230.5 | 260.8 | 257.2 | 140.7 | 188.5 | 216.2 | ||
| Real estate markets (prices; year on year percent change) | ||||||||||
| One- or two dwelling buildings | 6.1 | 10.0 | 10.5 | 10.5 | 11.3 | −2.0 | 7.1 | 5.2 | ||
| Greater Stockholm region | 0.7 | 8.8 | 9.1 | 11.6 | 15.6 | −3.2 | 5.9 | 6.9 | ||
| Buildings for seasonal and secondary use | 7.9 | 9.4 | 13.7 | 7.6 | 13.3 | −2.8 | 12.2 | 0.9 | ||
Sweden: Selected Financial Markets Indicators, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; and Haver.
Sweden: Selected Financial Markets Indicators, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; and Haver.Sweden: Selected Financial Markets Indicators, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; and Haver.This has been achieved in the context of a measured withdrawal of policy stimulus
6. Exit from the crisis intervention measures commenced in the Spring of 2010. The Riksbank stopped offering 3 and 6 month loans, replaced by 28 day loans with a penal rate and was among the first of advanced economy central banks to begin a tightening cycle, in July 2010, after the global crisis. The policy rate was raised by 150 basis points to 1¾ percent (Figure 5). By the end of 2010, the Riksbank had terminated all crisis-time liquidity measures and its balance sheet had contracted markedly. The government has kept the bank debt guarantee and bank recapitalization programs open, but currently there is no use of these programs.
Sweden: Inflation and Monetary Policy, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; Haver, and Riksbank.
Sweden: Inflation and Monetary Policy, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; Haver, and Riksbank.Sweden: Inflation and Monetary Policy, 2007–11
Citation: IMF Staff Country Reports 2011, 171; 10.5089/9781462300181.002.A001
Sources: Thomson Financial/Datastream; Bloomberg; Haver, and Riksbank.7. Rather than widening to over 2 percent of GDP as projected by both staff and the authorities, the fiscal deficit narrowed from 0.9 percent of GDP in 2009 to 0.3 percent of GDP in 2010, largely as automatic stabilizers responded to record growth (Tables 5 & 6 and Figure 6). Hence, the fiscal is estimated to have been broadly neutral, 1½ a percentage point of GDP smaller-than-projected.
Sweden: General Government Financial Accounts, 2007–2014
Staff measure
Authorities’ measure
Sweden: General Government Financial Accounts, 2007–2014
| Staff Projections | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||
| Budget | Prel. | Spring Bill | IMF | |||||||||
| (in billions SEK) | ||||||||||||
| Total Revenue | 1,643 | 1,662 | 1,610 | 1,605 | 1,675 | 1,731 | 1,751 | 1,836 | 1,937 | 2,029 | ||
| Direct Taxes | 663 | 635 | 608 | … | 634 | … | 661 | 685 | 727 | 763 | ||
| Indirect Taxes | 517 | 575 | 580 | … | 595 | … | 613 | 641 | 666 | 692 | ||
| Social Security Contributions | 292 | 271 | 251 | … | 273 | … | 292 | 312 | 336 | 355 | ||
| Interest income | 72 | 79 | 64 | … | 60 | … | 64 | 68 | 72 | 76 | ||
| Other income | 98 | 102 | 107 | … | 113 | … | 121 | 129 | 136 | 143 | ||
| Expense | 1,441 | 1,494 | 1,536 | 1,603 | 1,578 | 1,605 | 1,605 | 1,672 | 1,743 | 1,805 | ||
| Current Transfers | 588 | 606 | 642 | 677 | 646 | 641 | 641 | 683 | 719 | 745 | ||
| Consumption | 797 | 835 | 858 | 888 | 899 | 919 | 919 | 946 | 981 | 1,017 | ||
| Interest Payments | 55 | 53 | 36 | 37 | 33 | 44 | 44 | 42 | 43 | 43 | ||
| Gross operating balance | 202 | 167 | 74 | 2 | 97 | 127 | 146 | 164 | 194 | 225 | ||
| Net acquisition of nonfinancial assets | 90 | 96 | 104 | 109 | 109 | 116 | 116 | 116 | 126 | 140 | ||
| Net primary lending | 95 | 46 | −57 | −129 | −38 | −10 | 10 | 22 | 39 | 52 | ||
| Net lending | 112 | 71 | −29 | −107 | −11 | 10 | 30 | 48 | 68 | 85 | ||
| Central government | 75 | 44 | −26 | −109 | −18 | 5 | 22 | 40 | 63 | 77 | ||
| Pension system | 33 | 31 | 5 | 3 | 5 | 14 | 17 | 13 | 10 | 11 | ||
| Local governments | 3 | −4 | −9 | 0 | 2 | −8 | −8 | −6 | −4 | −3 | ||
| (in percent of GDP) | ||||||||||||
| Total Revenue | 52.5 | 51.9 | 52.1 | 51.7 | 50.7 | 50.1 | 49.3 | 48.6 | 48.6 | 48.4 | ||
| Direct Taxes | 21.2 | 19.8 | 19.7 | … | 19.2 | … | 18.6 | 18.1 | 18.2 | 18.2 | ||
| Indirect Taxes | 16.5 | 17.9 | 18.8 | … | 18.0 | … | 17.3 | 17.0 | 16.7 | 16.5 | ||
| Social Security Contributions | 9.3 | 8.4 | 8.1 | … | 8.3 | … | 8.2 | 8.3 | 8.4 | 8.5 | ||
| Interest income | 2.3 | 2.5 | 2.1 | … | 1.8 | … | 1.8 | 1.8 | 1.8 | 1.8 | ||
| Other income | 3.1 | 3.2 | 3.5 | … | 3.4 | … | 3.4 | 3.4 | 3.4 | 3.4 | ||
| Expense | 46.1 | 46.6 | 49.7 | 51.6 | 47.8 | 46.4 | 45.2 | 44.2 | 43.7 | 43.0 | ||
| Current Transfers | 18.8 | 18.9 | 20.8 | 21.8 | 19.6 | 18.5 | 18.1 | 18.1 | 18.0 | 17.8 | ||
| Consumption | 25.5 | 26.1 | 27.8 | 28.6 | 27.2 | 26.6 | 25.9 | 25.0 | 24.6 | 24.3 | ||
| Interest Payments | 1.8 | 1.7 | 1.2 | 1.2 | 1.0 | 1.3 | 1.2 | 1.1 | 1.1 | 1.0 | ||
| Gross operating balance | 6.5 | 5.2 | 2.4 | 0.1 | 3.0 | 3.7 | 4.1 | 4.3 | 4.9 | 5.4 | ||
| Net acquisition of nonfinancial assets | 2.9 | 3.0 | 3.4 | 3.5 | 3.3 | 3.4 | 3.3 | 3.1 | 3.2 | 3.3 | ||
| Net primary lending | 3.0 | 1.4 | −1.8 | −4.0 | −1.1 | −0.2 | 0.3 | 0.6 | 1.0 | 1.2 | ||
| Net lending | 3.6 | 2.2 | −0.9 | −3.4 | −0.3 | 0.3 | 0.8 | 1.3 | 1.7 | 2.0 | ||
| Central government | 2.4 | 1.4 | −0.8 | −3.5 | −0.5 | 0.1 | 0.6 | 1.1 | 1.6 | 1.8 | ||
| Pension system | 1.1 | 1.0 | 0.2 | 0.1 | 0.2 | 0.4 | 0.5 | 0.4 | 0.2 | 0.3 | ||
| Local governments | 0.1 | −0.1 | −0.3 | 0.0 | 0.1 | −0.2 | −0.2 | −0.1 | −0.1 | −0.1 | ||
| Structural Balance 1/ | 1.0 | 0.9 | 1.3 | 0.2 | 1.4 | 1.4 | 1.3 | 1.2 | 1.5 | 1.9 | ||
| Fiscal Impulse (expansionary +) | 0.9 | 0.2 | −0.4 | −1.2 | −0.2 | 0.4 | 0.2 | 0.0 | −0.2 | −0.4 | ||
| Memorandum items: | ||||||||||||
| Compliance with fiscal rule | ||||||||||||
| Overall balance average since 2000 | 1.3 | 1.4 | 1.2 | 0.8 | 0.7 | 0.5 | 0.7 | 0.6 | 0.7 | 0.8 | ||
| Overall balance ten-year average | 1.2 | 1.4 | 1.2 | 0.5 | 0.8 | 0.7 | 0.7 | 1.0 | 1.3 | 1.5 | ||
| Overall balance7-year rolling average (±3 years) | 1.3 | 1.4 | 1.3 | … | 1.2 | 0.7 | 1.0 | 1.0 | 1.4 | 0.0 | ||
| Structural balance 2/ | 1.2 | 1.7 | 3.0 | 0.2 | 1.8 | 1.3 | … | 2.3 | 3.0 | 3.8 | ||
| Gross Public Debt (percent of GDP) | 40.2 | 38.8 | 42.8 | 45.5 | 39.8 | 36.8 | 36.1 | 32.7 | 29.2 | 25.8 | ||
| Nominal GDP (in billions of SEK) | 3,126 | 3,204 | 3,089 | 3,105 | 3,301 | 3,459 | 3,553 | 3,779 | 3,990 | 4,192 | ||
| Output gap (percent of potential) | 5.4 | 1.5 | −5.9 | −6.5 | −3.1 | −1.9 | −1.6 | −0.9 | −0.1 | 0.1 | ||
| Employment gap (percent of potential) | 3.6 | 3.0 | −3.4 | … | −2.0 | … | 0.4 | 0.8 | 0.8 | 0.5 | ||
Staff measure
Authorities’ measure
Sweden: General Government Financial Accounts, 2007–2014
| Staff Projections | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||
| Budget | Prel. | Spring Bill | IMF | |||||||||
| (in billions SEK) | ||||||||||||
| Total Revenue | 1,643 | 1,662 | 1,610 | 1,605 | 1,675 | 1,731 | 1,751 | 1,836 | 1,937 | 2,029 | ||
| Direct Taxes | 663 | 635 | 608 | … | 634 | … | 661 | 685 | 727 | 763 | ||
| Indirect Taxes | 517 | 575 | 580 | … | 595 | … | 613 | 641 | 666 | 692 | ||
| Social Security Contributions | 292 | 271 | 251 | … | 273 | … | 292 | 312 | 336 | 355 | ||
| Interest income | 72 | 79 | 64 | … | 60 | … | 64 | 68 | 72 | 76 | ||
| Other income | 98 | 102 | 107 | … | 113 | … | 121 | 129 | 136 | 143 | ||
| Expense | 1,441 | 1,494 | 1,536 | 1,603 | 1,578 | 1,605 | 1,605 | 1,672 | 1,743 | 1,805 | ||
| Current Transfers | 588 | 606 | 642 | 677 | 646 | 641 | 641 | 683 | 719 | 745 | ||
| Consumption | 797 | 835 | 858 | 888 | 899 | 919 | 919 | 946 | 981 | 1,017 | ||
| Interest Payments | 55 | 53 | 36 | 37 | 33 | 44 | 44 | 42 | 43 | 43 | ||
| Gross operating balance | 202 | 167 | 74 | 2 | 97 | 127 | 146 | 164 | 194 | 225 | ||
| Net acquisition of nonfinancial assets | 90 | 96 | 104 | 109 | 109 | 116 | 116 | 116 | 126 | 140 | ||
| Net primary lending | 95 | 46 | −57 | −129 | −38 | −10 | 10 | 22 | 39 | 52 | ||
| Net lending | 112 | 71 | −29 | −107 | −11 | 10 | 30 | 48 | 68 | 85 | ||
| Central government | 75 | 44 | −26 | −109 | −18 | 5 | 22 | 40 | 63 | 77 | ||
| Pension system | 33 | 31 | 5 | 3 | 5 | 14 | 17 | 13 | 10 | 11 | ||
| Local governments | 3 | −4 | −9 | 0 | 2 | −8 | −8 | −6 | −4 | −3 | ||
| (in percent of GDP) | ||||||||||||
| Total Revenue | 52.5 | 51.9 | 52.1 | 51.7 | 50.7 | 50.1 | 49.3 | 48.6 | 48.6 | 48.4 | ||
| Direct Taxes | 21.2 | 19.8 | 19.7 | … | 19.2 | … | 18.6 | 18.1 | 18.2 | 18.2 | ||
| Indirect Taxes | 16.5 | 17.9 | 18.8 | … | 18.0 | … | 17.3 | 17.0 | 16.7 | 16.5 | ||
| Social Security Contributions | 9.3 | 8.4 | 8.1 | … | 8.3 | … | 8.2 | 8.3 | 8.4 | 8.5 | ||
| Interest income | 2.3 | 2.5 | 2.1 | … | 1.8 | … | 1.8 | 1.8 | 1.8 | 1.8 | ||
| Other income | 3.1 | 3.2 | 3.5 | … | 3.4 | … | 3.4 | 3.4 | 3.4 | 3.4 | ||
| Expense | 46.1 | 46.6 | 49.7 | 51.6 | 47.8 | 46.4 | 45.2 | 44.2 | 43.7 | 43.0 | ||
| Current Transfers | 18.8 | 18.9 | 20.8 | 21.8 | 19.6 | 18.5 | 18.1 | 18.1 | 18.0 | 17.8 | ||
| Consumption | 25.5 | 26.1 | 27.8 | 28.6 | 27.2 | 26.6 | 25.9 | 25.0 | 24.6 | 24.3 | ||
| Interest Payments | 1.8 | 1.7 | 1.2 | 1.2 | 1.0 | 1.3 | 1.2 | 1.1 | 1.1 | 1.0 | ||
| Gross operating balance | 6.5 | 5.2 | 2.4 | 0.1 | 3.0 | 3.7 | 4.1 | 4.3 | 4.9 | 5.4 | ||
| Net acquisition of nonfinancial assets | 2.9 | 3.0 | 3.4 | 3.5 | 3.3 | 3.4 | 3.3 | 3.1 | 3.2 | 3.3 | ||
| Net primary lending | 3.0 | 1.4 | −1.8 | −4.0 | −1.1 | −0.2 | 0.3 | 0.6 | 1.0 | 1.2 | ||
| Net lending | 3.6 | 2.2 | −0.9 | −3.4 | −0.3 | 0.3 | 0.8 | 1.3 | 1.7 | 2.0 | ||
| Central government | 2.4 | 1.4 | −0.8 | −3.5 | −0.5 | 0.1 | 0.6 | 1.1 | 1.6 | 1.8 | ||
| Pension system | 1.1 | 1.0 | 0.2 | 0.1 | 0.2 | 0.4 | 0.5 | 0.4 | 0.2 | 0.3 | ||
| Local governments | 0.1 | −0.1 | −0.3 | 0.0 | 0.1 | −0.2 | −0.2 | −0.1 | −0.1 | −0.1 | ||
| Structural Balance 1/ | 1.0 | 0.9 | 1.3 | 0.2 | 1.4 | 1.4 | 1.3 | 1.2 | 1.5 | 1.9 | ||
| Fiscal Impulse (expansionary +) | 0.9 | 0.2 | −0.4 | −1.2 | −0.2 | 0.4 | 0.2 | 0.0 | −0.2 | −0.4 | ||
| Memorandum items: | ||||||||||||
| Compliance with fiscal rule | ||||||||||||
| Overall balance average since 2000 | 1.3 | 1.4 | 1.2 | 0.8 | 0.7 | 0.5 | 0.7 | 0.6 | 0.7 | 0.8 | ||
| Overall balance ten-year average | 1.2 | 1.4 | 1.2 | 0.5 | 0.8 | 0.7 | 0.7 | 1.0 | 1.3 | 1.5 | ||
| Overall balance7-year rolling average (±3 years) | 1.3 | 1.4 | 1.3 | … | 1.2 | 0.7 | 1.0 | 1.0 | 1.4 | 0.0 | ||
| Structural balance 2/ | 1.2 | 1.7 | 3.0 | 0.2 | 1.8 | 1.3 | … | 2.3 | 3.0 | 3.8 | ||
| Gross Public Debt (percent of GDP) | 40.2 | 38.8 | 42.8 | 45.5 | 39.8 | 36.8 | 36.1 | 32.7 | 29.2 | 25.8 | ||
| Nominal GDP (in billions of SEK) | 3,126 | 3,204 | 3,089 | 3,105 | 3,301 | 3,459 | 3,553 | 3,779 | 3,990 | 4,192 | ||
| Output gap (percent of potential) | 5.4 | 1.5 | −5.9 | −6.5 | −3.1 | −1.9 | −1.6 | −0.9 | −0.1 | 0.1 | ||
| Employment gap (percent of potential) | 3.6 | 3.0 | −3.4 | … | −2.0 | … | 0.4 | 0.8 | 0.8 | 0.5 | ||
Staff measure
Authorities’ measure
Sweden: Public Sector Balance Sheet, 2003–11
Two scenarios: one with aging costs of 2.2 percent of GDP through 2050; and a second with aging costs of 8.0 percent of GDP through 2050.
Stream of discounted projected future primary fiscal balances under current policies and with the indicated aging costs. Discount rate is the average cost of government funding.
Considers only financial assets and liabilities (i.e. excludes capital stock). This measure is a liquidity indicator whereas the comprehensive net worth is a solvency indicator.
Sweden: Public Sector Balance Sheet, 2003–11
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In billions of SEK) | ||||||||||||
| Assets | 2,622 | 2,779 | 3,023 | 3,349 | 3,489 | 3,348 | 3,289 | 3,462 | 3,673 | |||
| Financial assets | 1,534 | 1,672 | 1,884 | 2,138 | 2,203 | 2,030 | 2,018 | 2,104 | 2,212 | |||
| Cash & ST securities | 57 | 57 | 65 | 87 | 96 | 146 | 149 | 152 | 157 | |||
| Equity and mutual funds | 725 | 785 | 921 | 1,067 | 1,109 | 904 | 872 | 931 | 1,002 | |||
| Other | 752 | 829 | 898 | 984 | 998 | 980 | 998 | 1,021 | 1,052 | |||
| Capital stock net of depreciation | 1,088 | 1,107 | 1,139 | 1,211 | 1,286 | 1,318 | 1,271 | 1,358 | 1,461 | |||
| Liabilities | 1,618 | 1,724 | 1,808 | 1,704 | 1,600 | 1,593 | 1,658 | 1,673 | 1,670 | |||
| Financial liabilities | 1,618 | 1,724 | 1,808 | 1,704 | 1,600 | 1,593 | 1,658 | 1,673 | 1,670 | |||
| Gross debt | 1,316 | 1,339 | 1,396 | 1,333 | 1,257 | 1,243 | 1,321 | 1,313 | 1,282 | |||
| Other | 301 | 384 | 412 | 371 | 343 | 350 | 337 | 360 | 388 | |||
| Current net worth | 1,005 | 1,055 | 1,215 | 1,645 | 1,889 | 1,755 | 1,631 | 1,789 | 2,003 | |||
| NPV of future fiscal policies (50 years) 1/ | 2,502 | 2,614 | 2,622 | 2,387 | 2,348 | 2,636 | 2,907 | 2,924 | 2,892 | |||
| Intertemporal net worth | 3,507 | 3,669 | 3,837 | 4,032 | 4,237 | 4,392 | 4,538 | 4,713 | 4,894 | |||
| Intertemporal financial net worth 3/ | 2,418 | 2,562 | 2,698 | 2,821 | 2,951 | 3,074 | 3,267 | 3,355 | 3,433 | |||
| (In percent of GDP) | ||||||||||||
| Assets | 103.0 | 104.4 | 109.2 | 113.7 | 111.6 | 104.5 | 106.5 | 104.9 | 103.4 | |||
| Financial assets | 60.3 | 62.8 | 68.0 | 72.6 | 70.5 | 63.4 | 65.3 | 63.7 | 62.3 | |||
| Cash & ST securities | 2.2 | 2.1 | 2.4 | 3.0 | 3.1 | 4.6 | 4.8 | 4.6 | 4.4 | |||
| Equity and mutual funds | 28.5 | 29.5 | 33.2 | 36.2 | 35.5 | 28.2 | 28.2 | 28.2 | ||||