National Debt

The current national debt: levels and GDP share

Sweden's government debt now amounts to approximately 1,101.5 billion kronor. This is a decrease compared to the previous month and means that the national debt equals 17.23 percent of the country's gross domestic product (GDP). The share is one of the lowest recorded since the early 1970s.

Drivers and financing

The national debt is influenced by the government's budget balance, i.e., the difference between income and expenses. When the government runs a deficit, it needs to borrow money, primarily by issuing government bonds and treasury bills. The Swedish National Debt Office manages the borrowing and ensures that the government can always meet its payment obligations. The recent reduction in debt suggests strong public finances or temporary income increases.

Interest costs and maturity

The government's interest costs depend on the interest rate environment and the size of the debt. When interest rates rise, the cost of new borrowing increases, but older loans may have lower fixed rates. The maturity – how long the government has fixed the interest rate on its loans – causes the effect of interest rate changes to be felt gradually. A low debt relative to GDP reduces sensitivity to interest rate hikes.

The development of the national debt in a historical context

• August 2025: National debt 1,101.5 billion kr (17.23% of GDP) – lowest share since 1972.
• September 2020: During the pandemic, debt rose to over 1,210 billion kr (24.02% of GDP).
• 1990s: The national debt peaked at over 1,400 billion kr and over 70% of GDP (1995).
• 1972: The national debt was 39.1 billion kr – but accounted for 17.24% of GDP, similar to today's share.
• Since the 1990s, the debt as a share of GDP has more than halved, despite nominal increases.

What does this mean for households and businesses?

A low national debt relative to GDP gives the government greater room for maneuver during future crises and can contribute to lower interest rates for the entire economy. It reduces the risk of rapid tax increases or cuts and creates stability for both households and businesses. At the same time, a low debt means the government has space to act if the economy deteriorates.

Outlook

If public finances continue to develop strongly, the national debt can remain low relative to GDP. However, changes in the economic cycle, political decisions, or unexpected expenses can quickly impact the debt. The interest rate environment and economic growth will be crucial in how the debt develops in the coming years.

Frequently asked questions about the national debt

• What is the national debt?
  The national debt is the total sum of the government's borrowings, meaning all the money the government has borrowed to cover budget deficits over time.
• Who is responsible for government borrowing?
  The Swedish National Debt Office is responsible for borrowing on behalf of the government by issuing government bonds and treasury bills.
• How does interest rate affect the national debt?
  Higher interest rates mean that it becomes more expensive for the government to borrow money, increasing interest costs on the national debt.
• Why is the national debt measured as a percentage of GDP?
  It shows how large the debt is relative to the country's economy and provides a better picture of how manageable the debt is.
• Can individuals buy Swedish government bonds?
  Yes, it is possible to buy government bonds through banks or securities brokers, but usually larger amounts are required.