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Excessive Deficit Procedure 2019

General government finance surplus at SEK 22 billion in 2019

Statistical news from Statistics Sweden 2020-09-30 9.30

In 2019, general government net lending/net borrowing amounted to SEK 22 billion and the consolidated gross debt amounted to SEK 1 762 billion. This means that Sweden has met the EU convergence requirements. Compared with 2018, general government finances were weakened by SEK 18 billion.

The general government finance surplus corresponded to 0.4 percent of GDP. Central government surplus amounted to SEK 60 billion, which is slightly lower than the previous year. Local government reported a deficit in 2019. The deficit increased from the previous year, mainly because expenditure increased while taxes on income increased at a slower rate. Social security funds reported a surplus in 2019, which was slightly lower than the year before.

General government gross debt decreased

General government consolidated gross debt decreased by SEK 117 billion between 2018 and 2019. In the same period, GDP in current prices increased by SEK 193 billion. Therefore, the debt in relation to GDP decreased from 38.9 percent in 2018 to 35.1 percent in 2019.

Central government debt decreased by SEK 161 billion, while local government debt increased by SEK 53 billion and social security fund debt decreased by SEK 10 billion. Central government consolidated gross debt in relation to GDP amounted to 23.8 percent at the end of 2019. The decrease in central government debt is due to the central government surplus, as well as a decrease in on-lending.

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.

In the context of this publication, net lending/borrowing has been revised for the years from 2000 to 2019 following a limited, annual review. General government debt has been similarly revised for the period from 2016 to 2019, while debt for the subsectors has been revised for the years from 2010 to 2019.

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 22 October 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 Government finance statistics webpage.

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 2016 2017 2018 2019
GDP 4 415.0 4 625.1 4 828.3 5 021.3
Net lending/borrowing 44.4 64.9 39.9 22.0
Percentage of GDP (%) 1.0 1.4 0.8 0.4
Gross debt 1 865.6 1 883.9 1 878.8 1 761.9
Percentage of GDP (%) 42.3 40.7 38.9 35.1

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2021-03-31 at 09:30.

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Statistics Sweden, National Accounts

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Felix Lennartsson

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