Denmark Household Debt

Loans primarily mortgage loans and consumer credit and other accounts payable.

Denmark household debt. Another argument presented by the danish central bank back in 2014 was that danish household debt risks are offset by high pension balances and household equity levels. Denmark s population is approximately 5 6 million. This is a very high level compared with. By far the major part of danish households debt is carried by families who are robust enough to be able to handle shocks to interest rates or incomes.

Danish households have one of the highest gross debt levels in the world. In advanced economies during the five years preceding 2007 the ratio of household debt to income rose by an average of 39 percentage points to 138 percent. If measured by percent of disposable income. As stated above the main reason for a household to raise debt is the purchase of a home.

Households debt to gdp in denmark averaged 108 06 percent of gdp from 1994 until 2019 reaching an all time high of 139 40 percent of gdp in the fourth quarter of 2009 and a record low of 69 10 percent of gdp in the fourth quarter of 1994. Debt is calculated as the sum of the following liability categories. Household debt ratio in denmark q4 2012 q2 2019 published by james cherowbrier jan 8 2020. However that is only one side of the equation explains danske bank s private economist louise aggerstrøm hansen.

High gross debt in denmark 140 but not a new phenomenon danish households gross debt is one of the highest in the world in proportion to the size of the economy. Households debt in denmark decreased to 111 70 percent of gdp in the fourth quarter of 2019 from 113 50 percent of gdp in the third quarter of 2019. This is also the group where the proportion of households with high debt to income ratios is largest. In the long term the denmark households debt to income is projected to trend around 215 96 percent in 2021 and 210 72 percent in 2022 according to our econometric models.

Denmark comes at seconds in the list with the household debt to gdp ratio of 123 60. Gross debt is 261. The debt of danish households is to a large extent concentrated among the households with the highest incomes. Reports claim that now 77 of denmark s citizens have started saving a part of their monthly income to avoid any financial trouble which might come.

Households debt to income in denmark is expected to reach 224 47 percent by the end of 2020 according to trading economics global macro models and analysts expectations. Houshold debt is defined as all liabilities of households including non profit institutions serving households that require payments of interest or principal by households to the creditors at a fixed dates in the future. However that is only one side of the equation as high debt levels are balanced by large assets. Denmark used to top the list until the last year.

In denmark iceland ireland the netherlands and norway debt peaked at more than 200 percent of household income.