Sweden forecasts recession on a par with 2008 due to COVID19 pandemic

DESPITE Sweden still not being in complete lockdown, the government is predicting a recession on the scale of 2008 as cautious Swedes stay away from bars, restaurants and shops.

In a statement today, the government said the “virus outbreak has had a serious impact on economic growth” in Sweden and worldwide as supply and demand issues have had a knock-on impact between countries.

Unemployment is expected to rise by nine per cent this year, according to Sweden’s finance ministry, and the country’s gross domestic product is forecast to drop by four per cent.

Sweden’s government debt is well below the European Union average, and in light of the crisis, the country has revealed measures which will contribute to an almost four per cent deficit in the government’s budget this year.

Sweden’s finance ministry said “we have created reserves that are meant to be used in times like these”.