KI: Signs of increased demand and production

GDP is expected to decline by 4.8 percent for 2020, according to KI's economic update published today.

Sweden's GDP plummeted by 8.6 percent during the second quarter of the year, but is expected to increase by just under two percent per quarter during the second half of 2020, which is in line with the June forecast.

KI sees signs that demand and production are turning upwards, but the recession continues to be deep.

“Despite this, the recession remains extremely deep. Companies are therefore continuing to reduce the number of employees and unemployment will reach up to 10 percent this winter, ”KI writes in a press release.

The active fiscal policy measures related to covid-19 amount to just over SEK 140 billion, around 3 percent of GDP, in 2020, according to KI's assessment.

"For 2021, the National Institute of Economic Research estimates that measures of approximately SEK 80 billion will be taken in addition to what follows from so-called unchanged rules," KI writes in its economic update.

The text is updated.