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- Throughout the coronavirus pandemic, Sweden has drawn international attention for its unorthodox approach to controlling the spread of the virus.
- Unlike most European countries, Sweden did not impose strict blocking measures. Now she’s reaping the rewards, financially speaking, at least.
- A Capital Economics report released Tuesday found the Swedish economy the least disadvantaged in Europe, describing it as “the best of a bad group.”
- Although Sweden was not immune to the economic impact of the pandemic, it was the only major economy that grew in the first quarter of the year, the report noted.
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Throughout the coronavirus pandemic, Sweden has drawn international attention for its unorthodox approach to controlling the spread of the virus.
The Nordic state did not impose strict closure measures, but instead asked citizens to stay home if they were ill and to practice social distancing in public. Bars, restaurants and shops remained open, even when the cases peaked in the country.
His laid-back coronavirus strategy, based on personal responsibility and voluntary obedience, has been praised and criticized. And while the jury has yet to rule on the effectiveness of the country’s public health approach, there is growing evidence that, economically speaking, the loose rules seem to have worked.
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A report by research firm Capital Economics released Tuesday found the Swedish economy the least disadvantaged in Europe, describing it as “the best of a bad group.”
Although Sweden was not immune to the economic impact of the pandemic, it was the only major economy that grew in the first quarter of the year, the report noted.
“The Swedish economy has weathered Covid well, thanks in part to the mild government blockade, and our forecast of a 1.5% drop in GDP this year is well above consensus,” wrote economists Andrew Kenningham, David Oxley and Melanie Debono. .
Capital economy
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As a group, the Nordic economies appeared to have weathered the COVID-19 storm better and “took off slightly” compared to the rest of the world, according to the report.
“A combination of decisive policy responses and structural factors will limit the damage caused by Covid in the Nordic economies, particularly in relation to the euro zone,” wrote the economists. “However, policy makers will not rest on their laurels and stricter politics is years away.”
But the consequences of COVID-19 will persist, and activity in the Nordic economies is likely to remain below pre-virus levels for the rest of the year, Capital Economics said.
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Capital Economics predicted that while economic output, the total value of goods and services produced, in Denmark and Norway would drop by about 3% this year, Sweden would see an even smaller contraction.
Here are brief descriptions of the state of the Nordic economies in the Capital Economics report:
- Sweden: “The best of a bad group in Europe”.
- Norway: “Recovering, but shaking energy to restrict growth.”
- Denmark: “The quick-lock outlet helps limit depression.”
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