The result of The refusal of Sweden on quarantine has exceeded expectations

The result of The refusal of Sweden on strict quarantine measures became a subject of dispute of economists worldwide, exceeded expectations of experts. To such conclusion analysts surveyed by Bloomberg.

According to them, in preparation for publication 5 August preliminary report of the government will record a drop in GDP in the second quarter by seven percent. This figure will be antirekordnaya for the largest economy in Northern Europe, however, the loss could be about two-thirds, if the authorities imposed full restriction measures to combat the spread of coronavirus.

Also, the decline was less significant compared to most countries in Europe and the United States. At the end of July reported quarterly fall in GDP of 32.9 percent, which was the worst figure in the entire history of the country.

The sources noted that Sweden”s refusal of large-scale quarantine have their negative sides: high mortality and uncertain about the prospects of a full economic recovery. Thus, neighboring Finland and Denmark managed to overcome the peak incidence and early to begin the renewal of individual companies and entire industries.

Analysts of investment company Capital Economics expect the GDP decline in the second quarter at 3.7 percent compared to the same period last year (four per cent compared to the first quarter).

The decision of the Swedish government to only impose superficial limitations on the background of the pandemic coronavirus has caused much controversy among economists. Some argued that the consequences for the country will be even more record in the long term. However, the authorities insisted that the rejection of the complete closure of businesses and prohibition of public events will make it easier to postpone the crisis.