The fact that the contraction in Swedish GDP in Q2 was smaller than elsewhere in Europe understandably took the headlines this week. However, Sweden’s experience still demonstrates the extent to which social distancing can weigh on activity, even in the absence of legal restrictions, and pours cold water on hopes that services activity elsewhere will get back to ‘normal’ levels soon. Next week, the Q2 GDP indicator from Denmark, released on Friday, is likely to confirm that the Danish economy also fared comparatively well in Q2.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services