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SWEDEN: Lending Growth Continues To Recover, Autos Exports Fall In Q4

SWEDEN

Swedish lending growth continued its gradual recovery in January, with household loan growth at 1.8% Y/Y (vs 1.6% prior) and non-financial corporate (i.e. business) growth at -0.5% Y/Y (vs -0.8% prior). Riksbank rate cuts are continuing to feed through into the real economy, which is contributing to a more tentative approach to monetary policy going forward.

  • This was the highest annual household growth rate since April 2023, and the highest business growth rate since December 2023.
  • Housing loans account for 83% of total household lending. The average floating mortgage rate (up to 3 months, accounting for ~70% of total housing loans) eased to 3.3% (vs 3.5% prior) in January, while the average rate on 1-5-year fixed rate mortgages was steady at 2.9%.
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January trade data was also released this morning, posting a merchandise trade surplus of SEK15.1bln (vs SEK5.4bln prior). On a 12-month rolling basis, the goods trade surplus rose to SEK74.2bln (vs SEK71.8bln prior).

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Swedish lending growth continued its gradual recovery in January, with household loan growth at 1.8% Y/Y (vs 1.6% prior) and non-financial corporate (i.e. business) growth at -0.5% Y/Y (vs -0.8% prior). Riksbank rate cuts are continuing to feed through into the real economy, which is contributing to a more tentative approach to monetary policy going forward.

  • This was the highest annual household growth rate since April 2023, and the highest business growth rate since December 2023.
  • Housing loans account for 83% of total household lending. The average floating mortgage rate (up to 3 months, accounting for ~70% of total housing loans) eased to 3.3% (vs 3.5% prior) in January, while the average rate on 1-5-year fixed rate mortgages was steady at 2.9%.
image

January trade data was also released this morning, posting a merchandise trade surplus of SEK15.1bln (vs SEK5.4bln prior). On a 12-month rolling basis, the goods trade surplus rose to SEK74.2bln (vs SEK71.8bln prior).

Keep reading...Show less