The Swedish economy has slowed down at an unprecedented pace for modern times amid the COVID-19 pandemic. Uncertainty is rife, and a prolonged crisis could have dire consequences.
Chief Analyst Torbjörn Isaksson discusses the Swedish outlook in the podcast below. Read more in the Nordea Economic Outlook, The Road to Recovery.
Podcast summary with time stamps:
0:28: Like many other countries, Sweden has also been hit hard by the pandemic. What is the current outlook, both in terms of the virus and the economy?
2:18: Sweden has gotten quite a lot of international attention for its coronavirus strategy, that has relied more on recommendations for people’s behaviour than a harsh lockdown. Has that approach had an effect when it comes to the economy?
4:19: In the report, you note that the plunge in exports accounts for most of the decline in GDP. What’s the outlook when it comes to exports?
6:09: Sweden has adopted strong fiscal policy measures to soften the blow of the pandemic, including a system for covering short-term layoffs. Have these measures been effective, and what’s the outlook for the labour market going forward?
8:19: There’s been some question around how long it will take for household consumption to pick up again. Will people stay home, fearing a second wave, and avoid spending money? Yet in the report you note that households are showing signs of resilience. What are we seeing?
10:00: Even though the key factors for monetary policy have all been at crisis levels, the Riksbank has not lowered its policy rate. Why is that and what can we expect regarding future monetary policy?
12:30: Finally, what’s the outlook when it comes to Sweden’s housing market?
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