Sweden’s light touchSweden Escapes Economic Slump by Refusing to Impose Lockdown

Published 7 May 2020

Sweden has reaped the benefits of keeping its economy out of lockdown after escaping the dramatic growth slumps suffered by European rivals. Russell Lynch writes in The Telegraph that the Scandinavian country has taken a far more relaxed approach to tackling the coronavirus than much of the West, keeping most schools, restaurants and businesses open and relying on a voluntary approach to social distancing. Official figures show the country’s economy shrank by just 0.3 percent in the first three months of 2020, a far smaller decline than most forecasters and its central bank expected. The Riksbank had penciled in a drop of between 0.8 percent and 1.8 percent. The smaller scale of the fall contrasts with record slumps seen elsewhere across the Eurozone over the quarter as governments imposed much more stringent measures. France’s economy tumbled 5.8 percent, Italy’s 4.7 percent and Spain’s by 5.2 percent, while the Eurozone’s output overall sank by 3.8 percent - the worst decline in its history. The figures are likely to be far worse in the second quarter as lockdowns grind on.