BIS central bankers’ speeches  9  Table 2 External scenario (annual change, percent) 2012  2013 (f)  Mar.13 Report  Sep.13 Report  Dec.13 Report  4.5-5.5 4.0-4.5  4.2  2014 (f)  Sep.13 Report  Dec.13 Report  GDP  5.6  4.0-5.0 3.75-4.75  Domestic demand Domestic demand (w/o inventory change) Gross fixed capital formation Total consumption Goods and services exports Goods and services imports  7.1 7.3 12.3 5.8 1.0 4.9  6.1 6.1 7.2 5.7 3.1 5.9  4.9 5.7 5.6 5.6 4.0 5.6  3.9 5.1 3.9 5.4 5.3 4.4  4.9 4.8 4.5 5.0 3.3 4.5  4.8 4.5 4.1 4.7 3.1 4.6  Current account (% of GDP)  -3.5  -4.4  -4.5  -3.2  -4.8  -3.7  December CPI December CPIEFE  1.5 1.5  2.8 2.5  2.6 1.7  2.6 1.9  2.8 2.8  2.5 2.9  (f) Forecast. Source: Central Bank of Chile.
SPEECH DATE:  18 September 2019  SPEAKER:  Governor Stefan Ingves  VENUE:  Business Arena Stockholm  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  Housing market challenges – weighing today against tomorrow Today, I am going to talk about something that affects all of us: the housing market. Everybody needs somewhere to live, regardless of whether this need is temporary or more permanent. When the housing market functions well, people can find a home for every phase of their lives and it is relatively easy to find the kind of home they want and can afford. In addition, the development of prices is such that the differences between a person owning their home and one renting one are minor. However, in Sweden, the housing market does not work well and has not for some time. This has contributed towards rising housing prices for an extended period. And this, in turn, has led to what I consider to be an unsustainable increase in household debt and has made both Swedish households and, ultimately, Swedish banks and Sweden’s economy vulnerable. This is something that the Riksbank 1 and other actors 2 have emphasised for many years. The prolonged, steep rise in housing prices is fundamentally due to the housing market being dysfunctional for several reasons.