By Emese Bartha


Sweden's government finances will worsen less than previously expected, leaving domestic government-bond issuance targets unchanged for this year and the next, the Swedish National Debt Office said.

"Growing expenditure contributes to a budget deficit this year and next year, causing Sweden's central government debt to rise," the NDO said in its borrowing review on Thursday. "However, the weakening of government finances now appears somewhat milder than previously expected."

The NDO forecasts a budget deficit of 71 billion Swedish kronor ($6.67 billion) in 2024, compared with a SEK84 billion deficit expected in February. It also forecasts a budget deficit of SEK56 billion in 2025, compared with SEK50 billion expected previously.

The NDO's new forecast doesn't prompt any major changes to the government borrowing plan, it said, leaving 2024 and 2025 issuance plans for nominal and inflation-linked bonds unchanged from the previous targets, it said.

Starting next year, the NDO will publish two central government borrowing reports a year instead of three, in May and November, it said.


Write to Emese Bartha at emese.bartha@wsj.com


(END) Dow Jones Newswires

05-30-24 0411ET