SwedenCapital: Stockholm
Language(s): Swedish
Population: 9,201,650
Total Area: 449,964 km²
GDP (in billion USD): 538

Sweden, officially the Kingdom of Sweden, is a Scandinavian country in Northern Europe. Sweden borders Norway and Finland, and is connected to Denmark by a bridge-tunnel.

The drop in house prices was partly influenced by the Riksbank's seven hikes in the key rate since July 2010, to 2% (the rate prevailing between July 2011 and October 2011). These hikes were in response to strong GDP growth in 2011 (3.9% ), and high lending for house purchases, Since then, because of the slowing economy, the Riksbank's key rate has been lowered to 1.50%.

It is likely that house prices in Sweden will slide or at best at best be stable in 2012, according to Riksbank Central Bank Governor Stefan Ingves. "The pace of lending is significantly lower now than before and we have a generally weaker economic development," says Ingves.

 


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