FAMAGUSTA GAZETTE – The Swedish government on Tuesday presented its 2025 Spring Budget, committing 11.5 billion Swedish kronor (1.18 billion U.S. dollars) to stimulate economic growth and address global financial uncertainty.
The supplementary budget, building on the full-year proposal from last autumn, aims to revitalize Sweden’s sluggish economy while bolstering defense, enhancing domestic security, and maintaining support for Ukraine, the government said in a statement.
Authorities also allocated funds for what they describe as Sweden’s most extensive crackdown on organized crime.
The Swedish economy remains under pressure, the government said, adding that the budget introduces measures to boost demand, curb unemployment, and accelerate the transition to a climate-friendly industrial base.
Officials cited rising geopolitical and economic risks, particularly pointing to recent U.S. tariff hikes.
“This has caused concern and heightened uncertainty about global economic growth, which in turn has led to turbulence in financial markets,” the statement said.
At a press briefing, Finance Minister Elisabeth Svantesson described the situation as unprecedented.
“We are facing a trade war at a time when global markets are deeply interconnected,” she said. “The Swedish economy began recovering late last year, but growth forecasts have since been revised downward and the recovery has stalled.”
Despite economic challenges, Svantesson said Sweden remains well-positioned due to its relatively low national debt.
The budget is the result of an agreement between the government coalition and the Sweden Democrats Party, which provides parliamentary support.
The government forecasts 2.1 percent economic growth in 2025, up from 1.0 percent in 2024, according to official figures.