Sweden acknowledges its no-lockdown COVID-19 strategy might have been a mistake
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Sweden captured attention for its relaxed approach to containing the spread of COVID-19 this year.
Social distancing was encouraged, but shops and restaurants stayed open, those younger than 16 continued to go to school and borders stayed open to European visitors.
That helped the economy continue to grow in the first quarter, unlike many other nations. But, with some data showing Sweden had the highest per capita death rate in the world last week, the architect of the country’s strategy says it might have been a mistake.
Sweden’s state epidemiologist Anders Tegnell said there is “potential for improvement” in the government’s no-lockdown strategy, suggesting a more effective policy might have been somewhere between what Sweden opted for and the strict restrictions other nations imposed.
Tegnell’s comments are an about-face: For months, he’s insisted his nation’s approach was more sustainable.
It has so far prevented the country from suffering the kind of deep economic blow other nation’s felt — Sweden’s economy grew 0.4% in the first quarter from a year ago, while the eurozone (which Sweden is not part of) contracted more than 3%.
Still, Robert Bergqvist, chief economist at SEB, says Sweden’s economic trajectory can be impacted by a number of factors.
“Exit policies in other countries in Europe — we are very dependent on exports. It also depends on recovery strategy,” Bergqvist said.
He said despite Tegnell’s comments, prospects of a lockdown now in Sweden are uncertain, and though public finances are strong, new restrictions would come with a price tag the country likely couldn’t afford.
COVID-19 Economy FAQs
What’s the latest on the extra COVID-19 unemployment benefits?
As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.
With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?
The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.
Which businesses got Paycheck Protection Program loans?
The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.
Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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