"'Sustainable Lockdown Policy' Effect?"... Sweden's Economy Performs Relatively Well in Q2

Sweden Records -8.6% in 2Q
Outperforms Eurozone Countries
Recovery Expected to Exceed Eurozone in 3Q

[Asia Economy Reporter Naju-seok] Sweden's economy has attracted attention for performing better economically than other European countries despite the COVID-19 pandemic. Unlike other European countries that implemented strict lockdown policies, Sweden adopted a loose lockdown policy (spread prevention measures), resulting in relatively less economic damage.

According to foreign media on the 5th (local time), Sweden recorded a growth rate of -8.6% in the second quarter of this year. Although this is the worst economic growth rate in Sweden's history, the situation looks different when compared to other European countries. This is because other European countries that implemented full lockdown policies had worse growth rates than Sweden.

Dr. Anders Tegnell, who oversees Sweden's COVID-19 response measures
[Image source=Reuters Yonhap News]

In the Eurozone, which refers to countries using the euro, the growth rate in the second quarter of this year was -12.1%. Especially Spain, which suffered massive damage due to COVID-19, recorded an economic growth rate of -18.5% in the second quarter of this year. Portugal -14.1%, France -13.8%, etc., also suffered serious damage.

David Oxley, Senior Economist at Capital Economics, pointed out, "It has been confirmed that Sweden's government's loose lockdown policy did not result in immunity to COVID-19, but the growth rate in the first half of this year contrasts sharply with other European countries, especially Southern European countries."

Despite the COVID-19 pandemic, Sweden showed a differentiated response by keeping schools open, unlike other European countries. Because of this, despite official denials from the Swedish government, there were criticisms suggesting that Sweden was pursuing overcoming COVID-19 through herd infection.

Sweden's quarantine measures, promoted based on social trust, were evaluated as sustainable quarantine measures, but questions were raised about the effectiveness of the quarantine due to cluster infections in nursing homes and a high infection rate relative to the population.

Sweden expected to show an economic recovery trend surpassing other European countries in the third quarter. Robert Bergqvist, Chief Economist at SEB, a Swedish bank, predicted, "Although Eurozone countries are expected to strongly rebound in the third quarter of this year, the Swedish economy will show an even greater recovery."

This content was produced with the assistance of AI translation services.