Savings Barometer, 4th quarter 2020
High levels of household savings in the fourth quarter
Statistical news from Statistics Sweden 2021-02-18 9.30
Households’ financial savings amounted to SEK 47 billion in the fourth quarter of 2020, the highest level recorded in a fourth quarter. Households’ continued high levels of net deposits in bank accounts and net purchases in shares and funds contributed to the high level of savings. At the same time, households’ net borrowing increased more than in earlier quarters during the year.
In the fourth quarter of 2020, new savings in financial assets amounted to SEK 127 billion, while liabilities increased by SEK 80 billion, which resulted in SEK 47 billion in financial savings. This was the highest level of financial savings in a fourth quarter since the beginning of the time series in 1996. Financial savings was SEK 20 billion more in the fourth quarter of 2020 than in the corresponding quarter a year ago.
In 2020, the level of households’ financial savings was high and amounted to SEK 351 billion in total, which is nearly SEK 60 billion more than in 2019 and SEK 85 billion more than in 2018.
Persistently high level of savings in bank accounts
In recent years, households’ net deposits in bank accounts have been substantial, despite a low interest rate. In the fourth quarter of 2020, households’ net deposits in bank accounts amounted to SEK 36 billion, which is the highest amount recorded in a fourth quarter since 1996, at the beginning of the time series. In the year 2020, households made net deposits of SEK 213 billion, which is almost twice as much as the last five-year average.
Households continued to purchase funds
Households made net purchases of funds for SEK 20 billion, which is on a level with both the second quarter and the third quarter this year. Within the different fund categories, equity funds were the most popular in the fourth quarter, as households made net purchases of equity funds for SEK 12 billion. Households also made net purchases of Swedish listed shares for nearly SEK 8 billion in the fourth quarter. In the full year 2020, net purchases of Swedish listed shares amounted to SEK 21 billion, which can be compared with net sales of SEK 14 billion in 2019.
Annual growth rate of loans rose
Households’ net borrowing, that is, new loans minus amortisations, amounted to SEK 69 billion in the fourth quarter of 2020, which is SEK 11 billion more than in the corresponding quarter a year ago, and is the highest level recorded of net borrowing in a single quarter in more than three years. This higher level of net borrowing can be explained, in part, by banks’ temporary relaxations on amortisation requirements.
The annual growth rate of loans was 5.3 percent in the fourth quarter of 2020, which is 0.4 percentage points more than in the corresponding quarter a year ago. Households’ loans, which consist primarily of loans in banks and housing credit institutions, as well as student loans, amounted to SEK 4 669 billion at the end of the fourth quarter of 2020.
Low level of net purchases of new tenant-owned apartments
Households’ net purchases of new tenant-owned apartments amounted to SEK 7 billion in the fourth quarter of 2020, which is SEK 17 billion less than in the same quarter a year ago and the lowest level in a single quarter in more than four years. New tenant-owned apartments consist of apartments with changing rights of tenancy to tenant-owned apartments and newly produced tenant-owned apartments. In 2020, households’ net purchases of new tenant-owned apartments amounted to SEK 46 billion, which is considerably less than in 2019, when net purchases amounted to SEK 73 billion.
Households’ assets in tenant-owned apartments amounted to SEK 2 956 billion at the end of the fourth quarter of 2020. In the full year 2020, the value of households’ tenant-owned apartments rose by 6 percent. Households’ ownership of tenant-owned apartments is a financial asset and is included in the Savings Barometer. One- or two-dwelling buildings with ownership rights are not included, since they constitute real assets. Information about households’ total assets in housing is available in the National Wealth. Read more about National Wealth under More information.
Financial net wealth increased
Households’ financial net wealth rose by 4 percent and amounted to SEK 12 300 billion at the end of the fourth quarter of 2020. The value of direct ownership in shares and funds, in particular, increased, as well as indirect ownership in shares and funds via pension savings. The value of these assets increased mainly due to the upturn in the stock market during the quarter. The stock market rose by 5.6 percent in the fourth quarter of 2020, according to the Affärsvärlden General Index.
Definitions and explanations
Financial savings is calculated as the difference between transactions in financial assets and transactions in liabilities.
No major revisions or methodology changes are published in the Savings Barometer. These are published, instead, in the Financial Accounts, in which there is more time for calculations and reconciliation with other sectors, and in which revision documentation is published. However, minor revisions can occur due to, for instance, revised primary statistics.
In connection with the publication of the Savings Barometer for the fourth quarter of 2020, the entire time series has been updated from the first quarter 2017 onwards with the revisions introduced in the Financial Accounts’ publication on 17 December.
More detailed descriptions of major revisions are contained in the statistical news on Financial Accounts:
Financial accounts, quarterly and annual
More information: The National Wealth
The National Wealth, which contains annual data on non-financial and financial assets, is also published in connection with the publication of the Financial Accounts. Financial assets and liabilities are collected from Financial accounts and are thereby consistent with the values published in Financial Accounts.
For more information, see:
Nationalförmögenheten och nationella balansräkningar (pdf)
Statistical database;
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2021-05-20 at 09:30.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.