Sweden: Low business confidence

The Swedish economy is facing a deeper contraction than during the domestic banking crisis of the early 1990s. Output is projected to fall sharply in 2009 before recovering gradually in 2010, with the unemployment rate exceeding 11%.

Business confidence is at very low levels but seems to be bottoming out.

Falling GDP will produce a large output gap, so underlying inflation will decline even as growth recovers. Orthodox monetary policy has been eased about as much as is practical, but further measures to reduce market interest rates could be considered. Both automatic and discretionary fiscal responses will support demand and further measures may help cap the rise in unemployment.

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See also www.oecd.org/sweden  

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©OECD Observer No 274, July 2009

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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