Consumer Credit in Sweden

2020 IMPACT

COVID-19 reshapes credit demand patterns, but light touch regulation means industry performs comparatively well

The Swedish government’s restrained approach to the management of COVID-19 has meant that the virus has a comparatively limited effect on consumer credit in Sweden. There has been no mandated closure of retail outlets or bars and restaurants, and although strictly observed social distancing measures are in place, these have continues to trade since the beginning of the pandemic.

Spectre of unemployment set to support credit demand through 2020 and beyond

Education lending growth in 2020 is actually set to outperform growth in 2019, as rising unemployment as a result of the virus. Although the Swedish government has put in place a strong furlough scheme, there is likely to be a massive contraction of Swedish jobs, with an emphasis on the hotels, restaurants and retail sectors.

Card lending helped by consumer anxiety around cash, and Sweden’s well developed payment infrastructure

Card lending is set to see a decline in 2020, although in fact the performance of these products has been better than might be expected. Declining consumer spending opportunities, with more people working from home and social distancing regulations restricting retail and foodservice demand, have slowed consumption growth, and consumer uncertainty about the economy has also inhibited spending.

Files are delivered directly into your account within a few minutes of purchase.