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Excessive Deficit Procedure 2018

General government finance surplus at SEK 43 billion in 2018

Statistical news from Statistics Sweden 2019-03-29 9.30

In 2018, general government net lending/net borrowing amounted to SEK 43 billion and the consolidated gross debt amounted to SEK 1 859 billion. This means that Sweden has met the EU convergence requirements. Compared with 2017, general government finances were weakened by SEK 21 billion.

The general government finance surplus corresponded to 0.9 percent of GDP. Central government surplus amounted to SEK 73.9 billion, which is SEK 1.4 billion less than the previous year. This surplus is primarily due to increased tax revenue. Local government reported a deficit in 2018, while social security funds reported a surplus. For local government, the deficit increased compared with the previous year. In the same period, net lending/net borrowing changed from a minor deficit to a surplus for social security funds.

General government consolidated gross debt decreased by SEK 10 billion between 2017 and 2018. In the same period, GDP in current prices increased by SEK 212 billion. Therefore, the debt in relation to GDP decreased from 40.8 percent in 2017 to 38.8 percent in 2018.

Central government debt decreased by SEK 57 billion, while local government and social security fund debt increased by SEK 46 billion and 3 billion respectively.

In the context of this publication, the debt has been updated for 2017 and preliminary data for 2018 have been added. Net lending/net borrowing has been revised from 2015 onwards following a methodological change in the calculation of interest payable of central government.

According to the EU convergence requirements, the government deficit must not be more than 3 percent and gross debt must not exceed 60 percent in relation to GDP, which means that Sweden has met the requirements.

The calculations for the Excessive Deficit Procedure are submitted by Statistics Sweden to Eurostat in accordance with the EU Stability and Growth Pact under Council Regulation (EC) No 479/2009, as amended by No 679/2010 and Commission Regulation (EU) No 220/2014. The figures reported will be audited by Eurostat and may be revised during this process. In this event, revised estimates will be published on 23 April by both Statistics Sweden and Eurostat.

More information about the Excessive Deficit Procedure, as well as government finances in general, is available on Eurostat’s website.

Comparison with ordinary financial accounts

Calculations of convergence requirements are somewhat different from the ordinary compilations in the financial accounts. For example, the gross debt is calculated at a nominal value, because this value must be paid on maturity. In the financial accounts valuation, gross debt is calculated at market value. The gross debt comprises only certain financial instruments, such as currency, deposits, debt securities and loans. The financial accounts also comprise equity and investment fund shares or units, other accounts receivable/payable, financial derivatives and occupational pensions.

SEK billions 2015 2016 2017 2018
GDP 4 201.5 4 385.5 4 578.8 4 790.7
Net lending/borrowing 1.6 43.9 64.6 43.2
Percentage of GDP (%) 0.0 1.0 1.4 0.9
Gross debt 1 856.3 1 857.8 1 869.1 1 859.1
Percentage of GDP (%) 44.2 42.4 40.8 38.8

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2019-09-30 at 09:30.

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Statistical agency and producer

Statistics Sweden, National Accounts

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Felix Lennartsson

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