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Political Economy

Tough for the Swedish economy as government payments shift into deficits

Wednesday, 20 February 2013
The Swedish economy continues to turn around at macro level and it looks like the government will end up borrowing to pay for its expenses.

The Debt office, predicts that government payments will show a deficit of Skr165 billion in 2013 and a deficit of Skr63 billion 2014, according to the Swedish Debt Office on Wednesday.

In the October forecast the Debt Office determined that government payments would show a deficit of Skr55 billion in 2013 and a deficit of Skr56 billion 2014. The difference in the forecasts therefore amounts to some Skr110 billion.

The change in borrowing forecast for 2013 is primarily due to the increased on -lending to the Riksbank, Skr100 billion, as announced earlier.

The issue volume in nominal government bonds amounting to Skr74 billion in 2013, unchanged from the October forecast. In 2014 the Debt Office plan to issue government bonds for Skr84 billion.

Borrowing in inflation-linked bonds is estimated to be Skr12 billion in 2013 and 2014. Borrowing in treasury bills are estimated to be Skr130 billion in 2013 and Skr150 billion in 2014. Borrowing in bonds denominated in foreign currencies are estimated at Skr137 billion in 2013 and Skr 71 billion in 2014, including on - lending to the Riksbank.

The Debt Office estimates that government debt is Skr1,310 billion at the end of 2013 and then rise to in Skr1,388 billion at the end of 2014.
By Scancomark.com Team

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