Sweden’s economy grew more than expected in the third quarter of 2020. Thus, the country’s refusal from strict quarantine has paid off reports Bloomberg citing data from the Swedish statistical office.
The country’s GDP in July-September grew by 4.9 percent compared to the second quarter, and not by 4.3 percent, as previously assumed. The reason was the improvement in the situation with the coronavirus in the summer months and the growth of consumer demand. However, the kingdom’s authorities have already warned that the fourth quarter will be bleak as the epidemiological situation worsens.
Earlier, the Central Bank of Sweden presented an updated forecast for the situation in the economy in 2020, which was revised downward. Earlier, the regulator expected that the country’s GDP would fall by 3.6 percent by the end of the year. According to the latest forecast, the fall will reach 4 percent. The rebound in 2021 will be more modest than expected: initially, the central bank predicted growth of 3.7 percent, now the regulator expects growth only by 2.6 percent. Inflation will be below the 2 percent target.
Sweden’s GDP in the second quarter of 2020 fell by 8.6 percent in relation to the first. The Kingdom is the only European Union state that has abandoned tough restrictions during the coronavirus pandemic. The country’s authorities stated that they are seeking to form collective immunity and prevent a large-scale economic crisis.