STOCKHOLM, Dec 1 (Reuters) - Sweden’s financial system is robust, but strong growth and low interest rates may be creating problems for the economy, the financial watchdog said on Thursday.
“There is a risk that imbalances are building up, and even though they are difficult to identify and measure, they are very important to monitor,” said the Swedish Financial Supervisory Authority in its bi-annual stability report.
Sweden has one of Europe’s biggest financial sectors relative to the size of its economy.
Rapidly rising house prices and household debt over the last 20 years have prompted warnings from the country’s central bank as well as from the European Commission and the International Monetary Fund.
Reporting by Johan Ahlander; Editing by Simon Johnson