Sweden unlikely to feel economic benefit of no-lockdown approach

Analysts forecast that growth will contract at a similar rate to rest of Europe



Mickes, unlike most record shops in Europe, is still open for business. The compact store in southern Stockholm, crammed with thousands of vinyl LPs, last week enjoyed a steady stream of customers taking advantage of Sweden’s no-lockdown approach to coronavirus.

But owner Micke Englund said that while he was happy his shop was not closed, his business had still been hit hard by Covid-19. “When people became aware of coronavirus around March 12, we lost almost overnight 30 per cent. It’s OK. For a couple of months, it will work. But after that it will be very, very tough,” he said.

Sweden refused to follow other European countries in closing its primary schools and kindergartens or banning people from leaving their homes, arguing that taking such “draconian measures” was not sustainable and could unnecessarily harm the economy. Swedish business leaders such as Jacob Wallenberg have urged authorities to take the economy into consideration when thinking of imposing restrictions, or risk social unrest.

Sweden, with a population of 10m, has had 3,220 deaths so far from coronavirus — more than triple the number in neighbouring Denmark, Finland and Norway, which have a combined population of 15m. Relative to population 311 people have died per million in Sweden, while in neighbouring Norway the toll so far is 40 per million. 


More: https://www.ft.com/content/93105160-dcb4-4721-9e58-a7b262cd4b6e