Moderate Increase in Households’ Loan Stock Observed in Q1 2023, Indebtedness Ratio Shows Improvement

Statistics Finland has reported a moderate increase in households’ loan debts during the first quarter of 2023. The total loan stock rose by EUR 0.2 billion compared to the previous quarter. However, there was a positive development in terms of households’ indebtedness ratio, which decreased by 1.6 percentage points. At the end of the first quarter, households’ indebtedness ratio stood at 129.9 percent.

The data reveals that households’ debts reached EUR 205.5 billion, reflecting an increase of EUR 2.9 billion from the previous quarter. Despite the growth in absolute debt figures, the decrease in the indebtedness ratio indicates a relative improvement in households’ financial situation compared to their total disposable income over the preceding four quarters.

In other financial news, the general government’s net financial assets, representing the difference between assets and liabilities, amounted to EUR 163.4 billion by the end of the first quarter of 2023. This marked an increase of EUR 1.7 billion from the previous quarter.

Furthermore, it is worth noting that the wellbeing services counties have commenced their activities as part of local government initiatives. Additionally, the central government’s liabilities exceeded its assets by EUR 74.8 billion.

The latest data suggests a cautiously positive trend in households’ loan stock and indebtedness ratio, indicating a relatively stable financial environment for Finnish households during the first quarter of 2023.

https://www.stat.fi/en/publication/cl8n4semz3rzf0dutwncmdts9


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