This with savings and loans is something that is always relevant. Do we borrow Swedes too much? Do we save too little? This is especially relevant when there are bad economic times and people worry about the future. What we can say is that debt has increased more or less constantly over the last 20 years. However, savings have not increased at all in the same steady manner as loans. There it goes up and down – often related to how the economy looks in the country.
In the mid-1990s, it was actually a fairly stable level of Swedes’ loan debt. It even diminished a bit in 1994 and 1995. After that, however, our loan craving began to increase and in the 2000s we have really gasped. In recent years we have borrowed quite a lot and the increase has been greater.
However, the interesting thing is to follow the Swedes’ savings during the same period when you can believe that savings would follow the loan to some extent. That at least there would be a constant increase in savings even if it had been less than for loans. However, this is another story.
The savings have historically gone up and down
The savings have historically gone up and down quite well over the last 20 years. 1997 – 1999 it was very bad with savings, but then it took off a bit. However, during the tough years of 2007 – 2009, we realized that more money needs to be saved and less spent. That meant you could see a pretty big boost in savings there and also in 2009.
It is interesting to look at statistics on how something has developed over a long period of time. Preferably over many years, so that you get a lot of data to analyze. What I looked into when I wrote this post was a chart of Swedes’ loan debt and savings between 1993 and 2011.
The conclusions that can be drawn are that loan debt is increasing very steadily. Sometimes there is not much increase and sometimes there is a little more, but the trend is that it is an increase in how much we borrow in Sweden. We consume more, borrow for housing, cars, gadgets etc. There is always a certain desire to buy things and to spend money.
When it comes to savings
there is no constant trend in the same way, but savings instead appear to be directly linked to the country’s and the world’s financial situation. Sometimes, through a financial crisis or similar, we get a reminder that everything is not always fantastic and then we realize that savings are needed for the future as well. Then we reduce consumption and put some money away.