8.00–17.00
Due to avoidance of a lockdown during the height of the COVID-19 pandemic Sweden’s economy is closer to pre-virus levels than most of its European counterparts. Moreover, Swedish government has implemented a slew of policies to protect people’s lives, health, and livelihoods.
Municipalities and regions have received significant funding to cover increased COVID-19 expenditures in order to help the management of deferred health care and mitigate the effects of the recession’s tax revenue loss. Companies have received financial assistance in order to weather the storm and avoid layoffs. In fact, companies have benefitted from the policies because they have lowered costs, increased liquidity, and improved access to capital.
To help the economy recover and contribute to long-term sustainable growth, the government is executing a powerful green restart. Investments in energy efficiency in multi-dwelling buildings, expanded charging infrastructure for heavy vehicles, earlier railway maintenance, measures to protect valuable nature, a tax break for the installation of green technology, and circular economy initiatives are among the measures being taken.
Regarding the labor market the government has made temporary improvements to unemployment insurance, enhanced health insurance, and expanded transition options. Many businesses and jobs have been saved due to support measures such as the short-time work allowance system. Sweden’s compensation systems have helped in maintaining a high labor force participation rate during the crisis. The unemployment rate still is high, however, it is likely to fall substantially in the future as labor demand rises.
Sweden’s financial support measures, according to the IMF’s most current estimate, are in line with those of numerous comparable nations, primarily other Nordic countries. In 2020, the Swedish economy fared significantly better than that of many other European countries, and its recovery has been faster so far. In the second quarter of 2021, Sweden’s GDP has returned to its pre-pandemic level.
Fiscal policy has played a larger role in this crisis than in previous ones. Without an active fiscal strategy and solid safety nets, businesses and workers would have been forced to face a greater share of losses.
