Coronavirus briefing: First reinfections found in Hong Kong and Europe
Coronavirus briefing: First reinfections found in Hong Kong and Europe

The epidemic

  • Global cases moved sideways. In the US, new cases continued to decline but have flattened out slightly over the weekend. The trend continued up in India and Europe, among others.
  • European cases were driven by Spain and France. Cases in the UK and Germany remained more stable. Cases in Italy, while still low, have also increased. Greece saw a record in new cases. Intensive care figures remain mostly stable, however, except for a moderate increase in Spain.
  • New cases per day remained stable across the Nordics over the past week. Cases in Sweden may have even declined somewhat, though the data could be affected by weekend effects.
  • The number of coronavirus patients in intensive care continued to decline slowly in Sweden and has now fallen to around 20 per day, down from the peak figures at well over 500 in April.
  • Daily cases increased in all the Baltic countries. The numbers still remain relatively low, however.
  • The first known case of coronavirus reinfection was found in Hong Kong. Reinfections were also found in the Netherlands and Belgium, but few details have been released.

Policy

  • In Sweden, the public health authority backs the government’s proposal of an increase in the allowed attendance in seated events from 50 to 500.
  • The Fed was announced to switch to average inflation targeting, where periods with low inflation will be offset by letting inflation periodically exceed 2%. In addition, the Fed will allow the labour market to improve more broadly and for longer periods of time in the future.
  • The German government agreed to extend its coronavirus relief measures by 10 bn EUR, which includes prolonging the short-time work scheme until the end of next year.
  • The Swedish government announced a restart package of over 100 bn SEK for 2021 and revised up its forecast on public sector budget balance.

Economic effects

  • The euro area's economic sentiment indicator rose more than expected in July, contrary to earlier signs of weakening PMI data. The improvement was mostly driven by services.
  • China’s official PMI data indicates continued recovery and that services' activity is catching up.
  • Sweden’s final Q2 GDP was revised upwards to -8.3% q/q, read more here.
  • Sweden’s Economic Tendency Indicator improved further in August, primarily due to less negative signals from the service sector, but the recovery remains sluggish. Read more here


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


Maija Kaartinen 
Economist 
Swedbank AB (publ) 
SE-105 34 Stockholm 
Phone: +46 8 700 92 73 
research.swedbank.se 


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