Households continue to be cautious

Households continue to be prudent in their choices of financial savings. During the fourth quarter last year households chose safer savings in the form of bank deposits and investments in bond and money market funds. Despite the positive stock market trend, savings in shares and equity funds decreased.

The financial wealth of households, i.e. financial assets minus liabilities, amounted to SEK 3 536 billion at the end of the year. This is an increase of SEK 133 billion during the fourth quarter of 2011. The Stockholm Stock Exchange rose 8.4 percent during the fourth quarter according to Affärsvärlden's general index. The positive stock market development strongly contributed to a partial recovery in wealth, of which parts were lost earlier in the year.

Despite the positive stock market development, households continued to be cautious. Possible reasons for this behaviour could have been the negative news about the European debt crisis, an uncertain housing market and the risk of a worsening labour market. Households continued to make net sales, purchases minus sales, of swedish shares and equity funds for SEK 3 billion in the fourth quarter. Net sales amounted to a total of SEK 28 billion in 2011.

Instead of shares, households chose safer savings forms such as bank deposits and short-term interest funds. Households' net purchases of short-term interest funds amounted to SEK 0.7 billion. This is the largest singlemost quarterly information noted since the fourth quarter of 2008.

Households' net deposits/withdrawals in Swedish short-term interest funds, SEK billions

Graph - Households' net deposits/withdrawals in Swedish short-term interest funds, SEK billions

Households' deposits in banks and financial institutions continued to be extensive. During the fourth quarter households' deposits increased by SEK 33 billion, which is at the level of the two most recent quarters.

Subdued increase of borrowing by non-financial corporations

Non-financial corporations increased their borrowing in monetary financial institutions by SEK 10 billion during the fourth quarter. The total loan stock of corporations amounted to a total of SEK 1 792 billion at the end of the year. Loan stock has increased by 7 percent in 2011 and have in terms of size passed the previous top level that was reached before the financial crisis.

Borrowing in monetary financial institutions by non-financial corporations

Graph - Borrowing in monetary financial institutions by non-financial corporations

Government savings substantially negative

Government financial savings were substantially negative during the fourth quarter at minus SEK 49 billion. In recent years government savings have shown a significant seasonal pattern with positive savings during the first three quarters followed by sharply negative savings during the fourth quarter. The negative savings of the fourth quarter were not as significant compared to the last two years. Financial savings for the entire year of 2011 were weakly negative at minus SEK 7 billion.

Financial savings in government, SEK billions

Graph - Borrowing in monetary financial institutions by non-financial corporations

The market value of the government debt amounted to SEK 1 338 billion at the end of the fourth quarter, corresponding to roughly 39 percent of GDP. In market value, government debt increased somewhat during the fourth quarter, SEK 62 billion.

Definitions and explanations

The financial accounts aim to provide information about financial assets and liabilities, as well as changes in savings and wealth for different sectors of society. The financial accounts' financial savings are calculated as the difference between transactions in financial assets and transactions in liabilities. The non-financial national accounts calculate financial savings as the difference between income and expenses. Financial accounts and the non-financial national accounts are based on different sources, which give rise to differences.
Financial savings and wealth of the household sector differ from the financial accounts and Statistics Sweden's Savings Barometer. The financial accounts also include the accrual of taxes and social security contributions. Further, the financial accounts present information including households' non-profit organisations.