Central government debt in relation to gross domestic product (GDP) was around 35 per cent at the end of 2013. Studying the central government debt in relation to GDP is a way of comparing the size of the debt with the country’s total economy.
Central government debt has fallen to below 40 per cent of GDP today from almost 80 per cent in 1995. This is because government finances have been much stronger since the economic crisis at the beginning of the 1990s. The central government debt has also decreased since the Government has transferred money from the AP (pension insurance) funds to the treasury and sold shares in (among other companies) Telia.
As the debt has fallen, so the GDP has increased. The combined effect of this is that the debt in relation to GDP has fallen relatively quickly.
Our calculation is based on a definition of the central government debt known as the “non-consolidated central government debt”. There are also other ways of measuring the central government debt. Read more about different ways of measuring the central government debt.