Coronavirus briefing: The number of new cases is increasing across Nordics and Baltics
Coronavirus briefing: The number of new cases is increasing across the Nordics and Baltics

The epidemic

  • Globally, coronavirus cases are nearing 20 million.
  • Increase in recorded cases continues across Europe. Spain still accounts for a large share of new infections, but the curve may have started to bend. Stable but slow case growth continues in France, Germany, and the UK.
  • In the US, the number of new daily cases continue to fall.
  • In developed Asia, cases may have peaked in Japan. In Singapore, new cases increased during the weekend.
  • In Sweden, the considerable decline in new cases came to an end at the end of July. The decline in the number of patients in hospitals and intensive care continues, however.
  • Elsewhere in the Nordics, the number of new cases has started to increase again. In Denmark and Norway, there is also a small uptick in the number of patients in hospitals.

Policy

  • BoE kept its monetary policy unchanged. The Monetary Policy Committee doesn’t plan to tighten policy until they’re certain about the inflation outlook.
  • After the collapse of talks with Congress on the stimulus package, Trump said on Saturday that he would extend additional coronavirus unemployment benefits and employment taxes into next year with executive orders but cut the level of some of the support.
  • Finland removed Belgium, the Netherlands, and Andorra from a green travel list.
  • A Norwegian municipality is closing kindergartens and banning gatherings due to new infections that came from Sweden.

Economic effects

  • In Sweden, the drop in economic activity in the second quarter was historical. GDP fell by 8.6% q/q. On an annual basis, economic activity dropped 8.2%.
  • In Finland, new orders in manufacturing fell by 11.8 % y/y in June. Orders have declined continuously for six months.
  • EMU manufacturing PMI increased by 4.4 index points to above 50 for the first time since January 2019.
  • In the US, non-farm payrolls surprised on the upside in July with an increase of 1.5 million. The unemployment rate fell by 0.9 pp to 10.2%. 




PDF-Document Read the full analysis/report here (pdf)


Sonja Liukkonen 
Junior Economist 
Swedbank AB (publ) 
FI-00100 Helsinki 
Phone: +358 400 98 21 59 
research.swedbank.se 


Subscribe »
This letter is distributed by Swedbank in cooperation with Brightly. The letter is personal.
You need Adobe Acrobat Reader to show PDF documents. (download here)