Swedish government borrows more to cover growing budget deficits this year and next, National Debt Office says

“Government debt continues to rise, albeit from a low level,” notes the Swedish National Debt Office.

The agency's new forecast is for a deficit of SEK 196 billion this year and SEK 208 billion in 2027, and it lowers the growth forecast to 1.9 percent this year, down from the previous 2.7 percent.

New fiscal policy measures, higher net lending and negative effects of the war in the Middle East on the Swedish economy are behind the increased borrowing requirement, according to the Swedish National Debt Office.

According to the Swedish National Debt Office's forecast, the national debt will increase to SEK 1,633 billion by the end of 2027, compared to SEK 1,244 billion at the end of 2025.