Sweden's GDP projected to shrink by 4.8 pct in 2020

Source: Xinhua | 2020-08-14

Sweden's GDP is expected to decline by 4.8 percent in 2020, according to an economic update by the Swedish National Institute of Economic Research (NIER) on Thursday.

Sweden's GDP plummeted by 8.6 percent during the second quarter of this year, but is expected to increase by just under two percent per quarter during the second half of 2020, according to NIER.

The pandemic has hit the Swedish business community hard, but demand and production seem to be turning upwards again, NIER noted.

According to NIER, Swedish exports have benefited from the easing of lockdowns across Europe. The government's support measures for the business community also had a positive effect.

The NIER update, however, underscored that the recession in Sweden remains "extremely deep."

"Companies are therefore continuing to reduce the number of employees, and unemployment will reach up to 10 percent this winter," noted the update.