Sweden Faces Growing Fiscal Deficits Amidst Economic Challenges

Sweden's National Debt Office announced on Thursday that the country expects a substantial fiscal budget deficit of 93 billion crowns ($9.69 billion) by the end of this year. This figure marks a significant increase compared to the previous forecast made in November, which projected a deficit of 65 billion crowns.

According to the Debt Office, the anticipation of increased government expenditure, especially in defense, contributes to the growing budget deficit that is projected to persist with a deficit of 89 billion by 2026. Officials emphasize the uncertainty surrounding the Swedish economy's future development as a factor influencing these projections.

Despite the hike in projected deficits, Sweden's central government debt remains relatively low from both a historical and international standpoint, the Debt Office added in its regular report on government borrowing needs. The current currency exchange rate stands at $1 equal to 9.5998 Swedish crowns.

(With inputs from agencies.)