Residential mortgages and credit card spending are projected to decline in Sweden over the coming months, according to GlobalData report.

The industry analyst firm expects credit card loans to plummet to -3.5% growth in 2020, compared to 0.9% pre-COVID-19, according to a press release on the findings. The report stated this will be a short-term hit and forecasts growth will bounce back to 1.4% in 2021, higher than the 0.8% figure predicted before the pandemic. The company expects to see growth of 0.9% in 2023, compared to 0.6% previously.

"COVID-19 will see a massive drawdown on existing credit lines. As a result, personal loan applications will also see a drop in 2020 as consumers cut back on discretionary spending and become more cautious about taking on additional liabilities, due to economic uncertainty," Ravi Sharma, GlobalData banking and payments analyst, said in the release.