Swedish government ups GDP forecast as economy bounces back from pandemic

Reading Time: < 1 minute

Sweden’s economy will grow substantially faster than previously expected this year, as it recovers from the effects of the COVID-19 pandemic, the government said.

Gross domestic product is expected to expand 4.7% in 2021 against 3.2% growth predicted in the previous forecast, made in April, the government said in a statement.

“”The recovery has been faster than we anticipated,” Finance Minister Magdalena Andersson told a news conference.

The government said that economic indicators pointed to continued strong growth through the year.

In 2022, growth is seen slowing to 2.9%, versus a previous forecast of 3.8% growth as a result of the quicker recovery this year.

The hit to Sweden’s economy from the pandemic turned out to be milder than first feared in 2020, when GDP shrank 2.8%.

In part, this was due to a response based more on voluntary measures focused on social distancing, rather than the strict lock downs periodically adopted across much of the continent and by Sweden’s Nordic neighbours.