"The new forecast shows that the budget balance will turn from a surplus of 40 billion Swedish crowns ($4.30 billion) in 2019 to a deficit of SEK 30 billion in 2020," the Debt Office said in a statement.

The Debt Office said the government ran an 80 billion crown surplus in 2018.

It said borrowing in government bonds, linkers and T-bills would be unchanged from the previous forecast, but it would borrow more in foreign currency - 90 billion crowns this year against its previous forecast of 44 billion.