Finansmarknad  Finansräkenskaper, kvartal Finansräkenskaper fjärde kvartalet 2004
In EnglishFinancial markets
Households
Government sector
List of tables
The Stockholm stock exchange rose by 6.6 per cent during the last quarter, and by 17 per cent during the entire year of 2004. This will influence all sectors having holdings in shares noted on the Swedish exchange by a positive value development of each holding. Those sectors that advanced the most during the year were telecommunications (up 25.8 per cent) and the consumer goods industry (up 22.8 per cent). At the same time, Swedish interest rates dropped during the year, affecting those sectors in the Swedish economy that are borrowers. One example of a large borrower on the interest market is the Government, which periodically emits large amounts of certificates and bonds. But even households can take advantage of falling interest rates, when costs for household loans are reduced. The Swedish krona continued to be strong against the US dollar - the dollar reached its lowest point of the year just before the end of the year. The stronger Swedish krona means that investments in US dollars have relatively decreased in value, which has influenced households' development of wealth negatively due to the relatively weaker development of investments in funds and pension savings in foreign currency.
Development of the Stockholm exchange and development of 6-month interest rate and 5-year interest rate during 2004
During the fourth quarter of 2004, households' savings, including non-profit organisations were negative and amounted to nearly minus SEK 19 billion. These savings were considerably lower than the corresponding period in 2003 when savings were also negative but remained at minus SEK 5.7 billion. During the last quarters of 2002 and 2001, savings were also higher and amounted to SEK 8.6 billion in Q4 2002 and SEK 5.4 billion during Q4 2001. Savings are normally lower during the last quarter of the year, when households increase spending instead of savings during the Christmas and New Year holidays.
Total savings of households during the four quarters of 2004 amounted to SEK 5.7 billion, also a lower figure than the previous year. In 2003, total financial savings amounted to nearly SEK 49 billion. The corresponding figures for 2002 and 2001 were SEK 49 billion and SEK 60 billion, respectively.
In total, households invested assets in financial instruments at a value of more than SEK 24 billion during the last quarter of 2004. At the same time, debts, mostly in the form of borrowing, increased by SEK 43 billion.
In line with the normal seasonal pattern, households increased holdings in banknotes and coins by SEK 3.5 billion during the quarter. Simultaneously, bank deposits decreased by slightly more than SEK 22 billion. As usual during the fourth quarter, households' holdings of cashier's cheques increased, which is sometimes interpreted as a way for households to avoid wealth taxes.
Emissions of Swedish bank cashier’s cheques
The largest part of households' investments, both during the last quarter and all of 2004, was in different forms of insurance savings. During the last quarter, households saved more than SEK 10 billion in private insurance savings. At the same time, employers set aside nearly SEK 14 billion in collective insurance savings, that is, in employee pensions for households. During all of 2004, savings in individual insurances amounted to slightly less than SEK 47 billion, and collective savings, in the form of employee pensions, amounted to SEK 57 billion. In 2003, individual insurance savings amounted to SEK 44 billion, while savings in employee pensions were valued at SEK 51 billion. If collective insurance savings are not included when analysing household savings, the savings results for recent years are negative.
During the last quarter of 2004, households increased their holdings in bonds and made purchases valued at almost SEK 14 billion, after selling during the first three quarters. Holdings of bonds include both premium bonds, equity index bonds and other bonds. Total purchases during the year amounted to SEK 7.8 billion. During the quarter, net sales of shares were valued at SEK 1.8 billion, and during the year, households sold shares at a value of SEK 2.8 billion. In 2003, Swedish households sold shares registered on Swedish exchanges at a value of SEK 4.1 billion. Households also invested money in mutual funds during the quarter, and continued the tendency to mainly invest in foreign funds. During the last quarter, purchases of funds amounted to SEK 5.5 billion, of which nearly SEK 5 billion was invested in foreign-registered funds. Interest funds were the most popular Swedish-registered funds in 2004, and SEK 3.4 billion were invested in these. In 2004, households purchased Swedish and foreign mutual funds for a total of SEK 23 billion. This is a decrease compared to 2003 when households purchased mutual funds for SEK 28 billion.
During the last quarter, households increased their debts by SEK 43 billion. During the year, total debts increased by nearly SEK 136 billion. The increase during the last quarter is somewhat higher than the increase of the previous quarter, SEK 32 billion, but is about in line with the increase during the second quarter when debts increased by SEK 44 billion. During the last quarter of 2003, debts increased by about SEK 40 billion. The greatest part of the increase in debts is from borrowing in housing finance institutes, which is the normal pattern. Borrowing in housing finance institutes amounted to SEK 30 billion during the last quarter of the year, and SEK 106 billion for all of 2004. Apart from housing finance institutes, households mainly borrowed from banks during the quarter. Loans amounted to SEK 7.3 billion during the last quarter, and nearly SEK 18 billion for the entire year of 2004.
The financial net wealth of households increased during 2004 and amounted to SEK 2 004 billion at the end of 2004. The corresponding figure for 2003 was SEK 1 873 billion. The value of financial assets amounted to SEK 3 626 on 31 December 2004, compared to SEK 3 357 billion at the end of 2003. Accordingly, the value of assets has increased by SEK 270 billion, even though investments only amounted to SEK 143 billion. A large part of the change is probably because households are primarily exposed against assets that have risen in value during the year. Examples are direct holdings of shares, funds and insurance savings that are related to shares, and tenant-owned flats. At the end of 2004, the share of household wealth consisting of directly owned shares, funds and tenant-owned flats amounted to 41 per cent of total wealth. This is followed by different types of insurance savings, both individual and collective, corresponding to 37 per cent, bank deposits at 17 per cent and other savings 5 per cent.
Household financial assets on 31 December 2004
On 31 December 2004, households' debts amounted to SEK 1 623 billion, an increase of SEK 140 billion compared to 31 December 2003 when debts amounted to SEK 1 873 billion. The largest part of household debts is from debts to housing finance institutes, which amounted to SEK 950 billion at the end of the year. Other significant types of household debts are debts in banks, amounting to SEK 315 billion, and study debts with the Swedish National Board of Student Aid of SEK 170 billion.
Households' debts to housing financing institutions, banks and the National Board of Student Aid, 31 December 2004
During the fourth quarter of 2004, the general government sector generated a net lending of slightly more than SEK 3.9 billion. Over the entire year of 2004, savings amounted to SEK 46 billion. This can be compared to 2003 when the general government sector generated a net lending of SEK 22 billion. The main sub-sector within the general government sector that has led to the increase in savings is the social security fund sector, where savings in 2004 amounted to nearly 64 billion. During the final quarter of the year, savings in the social security fund sector amounted to SEK 13 billion, and investments were primarily in shares, a change compared to the previous quarter when the sector had very low net transactions in shares.
According to the Maastricht Treaty, EU countries shall report annually to the EU Commission and the ECB on the deficit and consolidated gross debt of the general government sector at a nominal value. Since the debts are consolidated, they have been adjusted for debts kept within the sector. On 31 December 2004, the consolidated gross debt of the Swedish general government sector amounted to 51.2 per cent of GDP, a decrease compared to 2003 when debts amounted to 52 per cent.
According to Article 104 of the Maastricht Treaty, no country within the union should have debts exceeding 60 per cent of GDP. If debts exceed this amount, they must be reduced at a satisfactory rate. Those countries within the EU-15 with the highest consolidated debts are Greece, Italy and Belgium, while Luxembourg has the lowest debt rate at 7.5 per cent. On 31 December 2004, seven countries within the EU-15 were over the 60 per cent limit, which is one more country than at year-end 2003. From a general perspective, indebtedness among the new member countries is low. The average for all EU countries (EU-25) is at 63.8 per cent, and for the Euro-zone 71.3 per cent.
Government net lending amounted to minus SEK 11 billion during the fourth quarter of 2004. Over the full year 2004, government savings amounted to minus SEK 34 billion. However, savings were also sharply negative in 2003, at minus SEK 44 billion. During the fourth quarter, the government made financial investments amounting to SEK 5.5 billion, while debts rose by SEK 17 billion at the same time. For the entire year of 2004, the government made investments for SEK 4.3 billion, while at the same time debts increased by SEK 39 billion. During the year, certificates reached maturity at a value of SEK 60 billion, while the government emitted SEK 88 billion in bonds.
The government's outstanding debt at market value increased during the year by SEK 48 billion, amounting to SEK 1 419 billion at the end of the year. At the same time, the government's financial assets increased somewhat, and amount to SEK 771 at the end of the year, compared to SEK 734 billion at the end of 2003. The greater part of financial assets of the government consists of loans, most of which are loans amounting to SEK 170 billion to households via the Swedish National Board of Student Aid. Other large asset items consist of unlisted holdings in government enterprises, which amount to SEK 147 billion, and holdings in enterprises listed on the stock exchange, which amount to SEK 142 billion. Because of these large holdings in shares listed on the stock exchange, the Swedish government is the largest single owner on the Swedish stock exchange.
Although government debts at market value have increased in recent years, debts as a share of the total Swedish economy, measured in GDP in current prices have decreased. At the end of 2004, debts amounted to slightly less than 56 per cent of GDP, compared to 68 per cent at the end of 2000 and 90 per cent at the end of 1996. This drop in debts is partly because the government has amortised Swedish national debt during the last few years, and partly because GDP has grown faster than the Swedish national debt, resulting in a decrease in the ratio. During those years when the ratio fell the most, from 1999 to 2001, a large financial surplus was generated in the government sector, which is related to the transfers during these years from the Swedish national pension funds within the frame for the reforms in the pension system that were carried out during this period.
Households’ non-profit organisations include trade unions, religious denominations and certain associations working for the interests of households.
1. Net lending by institutional sectors 4th quarter 2004, transactions (SEK million)
2. Net lending by institutional sectors 3rd quarter 2004, transactions (SEK million)
3. Non-financial corporations, transactions (SEK million)
3. Non-financial corporations, outstanding values (SEK million)
4. Financial corporations, transactions (SEK million)
4. Financial corporations, outstanding values (SEK million)
4:1 The Central Bank, transactions (SEK million)
4:1 The Central Bank, outstanding values (SEK million)
4:2 Monetary financial institutions, transactions (SEK million)
4:2 Monetary financial institutions, outstanding values (SEK million)
4 :3 Insurance corporations, transactions (SEK million)
4:3 Insurance corporations, outstanding values (SEK million)
4:4 Other financial intermediaries, transactions (SEK million)
4:4 Other financial intermediaries, outstanding values (SEK million)
5. General government, transactions (SEK million)
5. General government, outstanding values (SEK million)
5:1 Central government, transactions (SEK million)
5:1 Central government, outstanding values (SEK million)
5:2 Local government, transactions (SEK million)
5:2 Local government, outstanding values (SEK million)
5:3 Social security funds, transactions (SEK million)
5:3 Social security funds, outstanding values (SEK million)
6. Households (Non-profit inst. serving households included), transactions (SEK million)
6. Households (Non-profit inst. serving households included), outstanding values (SEK million)
7. External transactions by financial claims and domestic subsectors (SEK million)
7. External position by financial claims and domestic subsectors (SEK million)
8. Deposits, outstanding values per 31th of December 2004 (SEK million)
9. Loans, leasing incl., outstanding values per 31th of December 2004 (SEK million)
10. Short-term securities, outstanding values per 31th of December 2004 (SEK million)
11. Bonds and debentures, outstanding values per 31th of December 2004 (SEK million)
12. Shares, Other equities and Mutual fund shares, outstanding values per 31th of December 2004 (SEK million)
13. Net lending according to financial accounts, quarterly (SEK billion)
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