European Commission urges Sweden to tackle housing crisis

The Commission notes that Sweden is experiencing "macroeconomic imbalances" and that in particular "persistent house price growth from already overvalued levels coupled with a continued rise in household debt poses risks of disorderly correction". If not dealt with, fallout could spill over to the financial sector as banks have a growing exposure to household mortgages, which could in turn hurt neighbouring countries in the Nordic-Baltic region, where Swedish banks are important. Household debt in Sweden has continued to rise from already high levels, the EC's report details, growing by 7.1 percent in 2016 and approaching 86 percent of GDP, as well as around 180 percent of disposable income. (The Local)



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