The impact of the housing market on the Swedish economy

Abstract

Sweden's economy is performing well. Economic growth is robust and inflation is close to the target level, despite the accommodative stance of monetary policy. Sweden's general government finances are slightly in surplus and government debt is small. In addition, Sweden's current account posts a considerable surplus. Housing prices have been on an upward trend for several years, particularly in Stockholm, Gothenburg and Malmö. Since autumn 2017, housing prices have, however, declined by some 10%. The near-term economic policy challenges include the resolving of structural problems on the housing market.