Sweden faces high levels of national and household debt

An opinion piece argues that Sweden is one of the most indebted countries in the world when accounting for municipalities, regions, and pensions, placing its debt at approximately 35 percent. While the state's finances are traditionally considered strong, the text highlights significant risks regarding household debt.

Household debt in Sweden has reached approximately 90 percent of GDP, nearly double the level seen 30 years ago, ranking ninth highest globally by certain measures. The text attributes this high indebtedness to political factors, including complex regulations, rent controls, and municipal planning monopolies that have contributed to housing shortages and rapid price increases.

These factors have caused house prices to rise ten times faster than real wages on a national level. Consequently, households remain highly sensitive to interest rate fluctuations, particularly due to the prevalence of variable-rate mortgages.