What Economies Can Learn From Sweden’s Lockdown Lite
(Bloomberg) -- While other economies have shut down and then reopened, Sweden has kept its restrictions largely intact since mid-March, offering a glimpse of what that might look like for other economies who are battling new outbreaks of the coronavirus. In this regime, production remains well below its pre-pandemic level for most of the services sector and for Sweden as a whole, with services output as well as total GDP was about 5% lower in July compared with before the virus struck: Taking into account industrial structure, Bloomberg Economics’ direct read across by sector suggests output might settle 3-6% below normal elsewhere in Europe. Even so, achieving a Sweden-style recovery may also require a Nordic adherence to the spirit of the rules.
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