Sweden’s ‘gentler’ lockdown to limit economic damage

Bloomberg

Sweden’s “relatively gentle lockdown strategy” will limit the downturn in its economy compared to those in other Nordic countries, according to analysts writing in SEB’s outlook report.
The region’s biggest economy will nevertheless be severely tested by the corona crisis with SEB expecting Swedish GDP to shrink by almost 7% in 2020, making it the largest drop in modern times.
In terms of monetary policy, the Riksbank will likely keep its repo rate unchanged at zero throughout this year and next.
, but SEB also predicts an expansion of the central bank’s bond-buying program by another 300 billion kronor ($30.6 billion).