Sweden's public finances are expected to run a wider deficit this year, the ESV budget watchdog said on Tuesday.

ESV said in a statement it expected public finances to run a deficit of 1.1% of gross domestic product (GDP) in 2023 compared to its previous forecast, published in March, for a deficit of 0.9% of GDP.

The watchdog saw GDP contracting 0.6% this year against its earlier forecast of a contraction of 1.2%. (Reporting by Simon Johnson, editing by Terje Solsvik)