We are in the midst of an extraordinary period as the coronavirus pandemic sends shockwaves through global trade. Never before have economies been hit by a crisis that affects both supply and demand simultaneously.
Companies are heading into uncharted waters with severe business implications, not to mention the pandemic’s heavy toll on human lives and healthcare systems.
This special edition of our regular report Global Economic Outlook outlines the measures being taken across the world to curb the spread of the coronavirus and assesses both immediate impacts on Swedish exports as well as long-term consequences for the economy.
Sweden is an internationalised economy that relies on the success of its export companies which account for approximately 50 per cent of the nation’s GDP. No less than 73 per cent of Sweden’s exports are destined for Europe. As such, the European shutdown in response to Covid-19 with varying restrictions on free movement has plunged Sweden’s economy into protracted uncertainty.
The report highlights the domino effects of the crisis, ranging from supply chain disruption and reduced household consumption to the threat of soaring unemployment in Sweden’s key export markets. It also outlines the scenarios that may or may not play out and, importantly, the options that exporting companies must now consider.
The effects of the coronavirus outbreak will no doubt be profound, long-lasting and possibly devastating. Small and medium-sized companies will suffer hardship. But if the outbreak is brought under control in the second quarter and restrictions ease up, economic activity may well go into a supercharged recovery mode.
It is therefore critical that Swedish exporters work to both mitigate disruption and re-positioning themselves for when normality finally returns.
Get the full overview of the economic impact of the coronavirus crisis – download the report.
About the analysis
Business Sweden’s semi-annual global economic outlook including a review of current developments in important Swedish export markets as well as forecasts for Swedish exports and country and regional economic growth.
The outlook includes a review of recent developments in the Swedish economy, but its main focus is the macroeconomic performance of the three key regions for Swedish exports: Europe, Asia and North America. Major Swedish export markets like Germany, the US and China are thoroughly analysed. An appendix provides the most recent hard data for 34 markets.