National Debt
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Sweden's national debt exceeds 1,280 billion – level and significance
Current national debt in figures
Sweden's national debt now amounts to 1,280,511 million kronor, corresponding to approximately 1,280 billion kronor. This is an increase compared to the previous month and means that the national debt accounts for 20.03 percent of the country's gross domestic product (GDP). Although the amount is high in absolute terms, the proportion of GDP remains at historically low levels compared to previous decades.
In just one year, the national debt has increased by nearly 270 billion kronor – yet the debt ratio is close to half of what it was during the 1990s.
Driving forces and financing
The national debt is mainly influenced by the government's budget balance – that is, the difference between income and expenditures. When the government runs a deficit, it needs to borrow money, usually through the Swedish National Debt Office issuing government bonds and treasury bills. The Debt Office is responsible for managing borrowing in a way that keeps costs down and risks under control. A growing debt can be due to increased expenditures, reduced tax revenues, or special initiatives.
Interest costs and maturity profile
Interest rates significantly impact the government's borrowing costs. When market interest rates rise, the government's interest expenses increase, especially for parts of the debt that mature and need refinancing. The maturity profile – how long until loans mature – affects how quickly changes in interest rates affect the government's budget.
Development of the national debt – historical highlights
- 2026: The national debt reaches 1,280.5 billion kr (20.03% of GDP).
- 2020: The debt was 1,055 billion kr (20.94% of GDP).
- 2010: The national debt was 1,110.8 billion kr (31.08% of GDP).
- 2000: The debt peaked at 1,330.2 billion kr (55.24% of GDP).
- 1996: Highest debt ratio during the period – 70.56% of GDP.
- 1975: The national debt was 61.8 billion kr, 18.45% of GDP.
What does the national debt mean for households and businesses?
The national debt influences interest rates and the government's scope for action. A high debt can lead to higher interest costs, which may affect taxes or public investments. At the same time, the current debt level relative to GDP is low from a historical perspective. For households and businesses, this means Sweden has relatively good opportunities to handle economic challenges without needing to raise taxes or cut welfare services quickly.
Outlook for the future
The national debt may continue to grow if budget deficits persist or if unexpected expenses arise. Conversely, stronger growth or budget surpluses can help stabilize or reduce the debt ratio. The interest rate environment and economic developments, both domestically and internationally, will be key factors for the future trajectory of the national debt.
Frequently asked questions about the national debt
- What is the national debt?
The national debt is the sum of the government's total borrowings, which arise when expenditures exceed income over time. - Who is responsible for managing the national debt?
The Swedish National Debt Office is responsible for borrowing on behalf of the government and managing the debt in a safe and cost-effective manner. - How does interest affect the government's costs?
When interest rates rise, the government's interest expenses increase, especially for maturing or variable-rate loans. Low interest rates make debt cheaper. - What is the size of the national debt relative to GDP?
Today, the national debt amounts to 20.03% of GDP, which is low compared to many previous years and internationally. - Can individuals buy government bonds?
Yes, individuals can purchase government bonds through banks or securities firms, but it often requires a larger amount than regular savings products.
Sweden's national debt
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