The kingdom is the only EU state that has given up severe restrictions during the coronavirus pandemic. The country’s authorities said they wanted to form a collective immunity and prevent a major economic crisis.
The Swedish economy grew more than expected in the third quarter of 2020. Thus, the country’s rejection of the harsh quarantine has justified itself. This is what Bloomberg writes with reference to data from the Swedish Statistical Office.
The country’s GDP grew by 4.9% in July-September compared to the second quarter, rather than by 4.3% as expected earlier. The reason for this was the improvement of the coronavirus in the summer months and the growth of consumer demand. However, the authorities of the kingdom have already warned that the fourth quarter will be gloomy as the epidemiological situation worsens.
Earlier, the Central Bank of Sweden presented an updated forecast of the economic situation in 2020, which was revised downward. Earlier, the regulator expected that the country’s GDP will fall by 3.6 percent at year-end. According to the latest forecast, the decline will reach 4 percent.
The rebound in 2021 will be more modest than expected: initially the central bank projected growth of 3.7 percent, now the regulator expects growth of only 2.6 percent. Inflation will be lower than the target of 2 percent.