National Debt

Sweden's National Debt: Level, Development, and Significance 2025

Current National Debt: 1,103 billion SEK – what does it mean?

Sweden's national debt now amounts to 1,103,470 million SEK, which corresponds to approximately 1,103 billion SEK. This means that the national debt constitutes 17.26 percent of the country's gross domestic product (GDP). Although the amount may seem high in absolute terms, the debt ratio is at a low international level and significantly lower than a few decades ago.

How is the national debt financed?

The national debt is governed by the government's budget balance – the difference between revenues and expenditures. When the government has a deficit, it needs to borrow funds, mainly by issuing government bonds and treasury bills. The Swedish National Debt Office is responsible for borrowing and ensuring the government's ability to pay both short-term and long-term. The level of government borrowing is influenced by economic conditions, political decisions, and unforeseen expenses.

Interest costs and maturity: how do they affect the economy?

The interest rate on the national debt is crucial for government costs. Higher market interest rates make borrowing more expensive, increasing annual interest expenses. Conversely, low interest rates reduce costs. The Swedish National Debt Office works to spread the debt over various maturities to reduce risk and predict costs. A large portion of the debt has longer maturities, which means interest rate changes impact gradually over time.

Historical perspective on the national debt

• The debt-to-GDP ratio has fallen sharply: from over 70% in the mid-1990s to today's 17.26%.
• The absolute amount has been relatively stable in recent years, but GDP has grown, reducing the debt ratio.
• During the pandemic in 2020, the debt rose to over 24% of GDP but has since decreased again.
• In the 1970s, the debt ratio was at levels comparable to today but increased rapidly during the 1980s and 1990s.
• In the past year, the debt has increased in kronor, but the proportion of GDP remains nearly unchanged.

What does the national debt mean for households and businesses?

A low national debt provides the government with greater flexibility during economic crises and can contribute to lower interest rates in the economy. At the same time, rising interest costs can crowd out other budget priorities. For households and businesses, stable public finances often mean a more secure economic environment, but changes in the national debt can influence interest rates and thus affect mortgages, investments, and the labor market.

Outlook: possible scenarios ahead

The future development of the national debt depends on economic growth, future budget decisions, and interest rates. If the economy continues to grow and the budget remains balanced, the debt ratio could decrease further. Large expenditure increases or a recession could lead to higher debt levels in kronor and as a share of GDP. The interest rate environment will be critical for the government's future costs.

Frequently Asked Questions about the national debt

• What is the national debt?
  The national debt is the total amount of the government's outstanding loans, meaning how much the government owes to lenders inside and outside Sweden.
• Who is responsible for Sweden's national debt?
  The Swedish National Debt Office is responsible for managing and financing the national debt and ensuring the government can meet its obligations.
• How does interest rate affect the national debt?
  Higher interest rates increase the government's interest costs on new and existing loans, while lower rates reduce these costs.
• What is the size of the national debt compared to GDP?
  The national debt currently amounts to 17.26 percent of Sweden's GDP, which is low compared to historical levels.
• Can private individuals buy government bonds?
  Yes, private individuals can purchase government bonds through banks or securities firms acting on behalf of the government.