Sweden had no lockdown but its economy is expected to suffer just as badly as its European neighbors.
Sweden’s central bank, the Riksbank, gave two possible scenarios for the economic outlook in 2020, both are bleak.
The growth projections are sobering for a country that looked to mitigate the economic impact of the coronavirus by not shutting down its economy like the rest of Europe. Lockdowns in Germany, Spain, Italy, France and the U.K., aimed at saving countless lives, have all hit their economies severely.
The International Monetary Fund predicted earlier in April that Germany and the U.K. will see their economies contract by 6.5% and 7% this year, respectively. France is expected to see a 7.2% contraction, Spain an 8% contraction and for Italy to see its economy shrink 9.1%.
Sweden’s neighbors Finland and Denmark, which also imposed lockdowns, are also expected to see their economies contract by 6% and 6.5%, respectively.
The grim data from Sweden’s central bank has been reinforced by a respected think tank this week.
The National Institute for Economic Research (NIER) said in a statement Wednesday that it believed that Sweden’s economy is set to shrink 7% this year and unemployment to rise to 10.2%.