What Economies Can Learn From Sweden’s Lockdown Lite

What Economies Can Learn From Sweden’s Lockdown Lite

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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