HELSINKI, April 15 (Xinhua) -- The Swedish government on Tuesday unveiled its 2025 Spring Budget, pledging 11.5 billion Swedish kronor (1.18 billion U.S. dollars) to stimulate growth and mitigate the impact of ongoing global economic uncertainty.

The supplementary budget, which follows the full-year proposal presented last autumn, aims to steer the country through a sluggish economic phase while boosting defence, increasing domestic security, and maintaining support for Ukraine, the government said in a statement.

It also includes continued funding for what authorities describe as the largest crackdown on organized crime in Sweden's history.

The Swedish economy is currently underperforming, the government said, adding that this additional budget proposes new measures to stimulate demand, curb unemployment and accelerate the transition to a climate-friendly industrial base.

The government cited elevated geopolitical and economic risks, pointing in particular to the recent U.S. sharp 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 news conference, Finance Minister Elisabeth Svantesson called the economic situation 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."

Nevertheless, Svantesson said Sweden remains well-positioned due to its relatively low national debt.

The budget reflects an agreement between the government coalition and the Sweden Democrats Party, who provide parliamentary support to the cabinet.

The government forecasts economic growth of 2.1 percent in 2025, up from 1.0 percent in 2024, according to official figures. (1 Swedish krona = 0.1024 U.S. dollars) Enditem

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