Photo: TT News Agency / Reuters
Sweden has improved the GDP forecast amid signs of economic recovery in connection with the rejection of quarantine. This writes Bloomberg with reference to the Minister of Finance Magdalena Andersson.
Now the government expects that GDP will shrink by six percent this year, rather than seven as predicted earlier. An assessment of the government coincides with the views of many economists who expect that the rejection of quarantine will save Sweden from a severe recession.
Andersson noted that it is too early to say if it helped the Swedish strategy for creating a collective immunity to soften the blow to the economy. The situation in the labour market, she said, remains “serious.” Unemployment could rise to 10.3 percent in 2021, compared with an earlier forecast of nine per cent.
Previously, the largest Bank of the Kingdom SEB said that the decline in consumer spending was less than expected. In addition, the unemployment rate is not increased as much as in other countries.
The refusal of Sweden of the introduction of stringent limitations world the pandemic has become a topic of international discussions. The mortality rate from infection in the country was one of the highest in the world. Strategy has helped to soften the blow to the economy, but to avoid the crisis of Sweden and failed. According to economists, the deterioration of the situation due to reduced exports.
Assessment of the Central Bank of the Kingdom, under a negative scenario, GDP will shrink by 9.7 percent by the end of 2020.
Video, photo All from Russia.