People walk at the Drottninggatan shopping street in main Stockholm on November 10, 2020, in the middle of the unique coronavirus Covid-19 pandemic.
With much of Europe going back to lockdown procedures over the past month in a quote to suppress resurgent coronavirus outbreaks, the northernmost pointer of the continent looks set to continue surpassing into 2021, according to HSBC.
Both Sweden and Norway notched better-than-expected recoveries in the 3rd quarter, with GDP (gross domestic product) broadening by 4.3% and 5.2% respectively after the second-quarter slump at the height of the coronavirus crisis.
Together with the favorable news on vaccines driving optimism about a global economic healing in 2021, HSBC worldwide economic expert James Pomeroy stated in a research note Monday that the degree of financial support readily available in both countries offers cause for a rosier outlook than the remainder of the industrialized world.
“Like much of the world, Scandinavia’s economies saw a strong rebound in Q3 2020. Development rates may not look as strong as elsewhere in the world on a quarterly basis, but the yearly declines are smaller than most developed economies,” Pomeroy said.
Both economies tightened up restrictions over the past month, despite Sweden’s previous skeptical position on lockdowns. Although not rather as stringent as the steps taken somewhere else on the continent, Swedish Prime Minister Stefan Lofven has urged the public to avoid gyms, libraries and restaurants and cut the limitation on public gatherings from 50 to 8.
“This will plainly indicate headwinds for intake in the 2nd half of Q4– therefore we cut our development forecast for the quarter to -1.7% (from +1.4%),” Pomeroy stated.
Norway has fared somewhat much better, with less than 70 deaths as an outcome of Covid-19 since July, while the GDP rebound of 5.2% after the 2nd quarter’s 6% contraction leaves the economy on a firmer footing than much of the continent.