Coronavirus briefing: Positive development continues in Sweden
Coronavirus briefing: Positive development continues in Sweden

The epidemic

  • Globally, daily cases have increased slightly. More than half of the daily increase globally comes from India, Brazil, and the US.
  • In the US, daily cases have moved sideways but have still risen in 22 states. There are large outbreaks in some colleges.
  • In India, daily cases continue to trend upwards. Deaths are also increasing but at a slower pace.
  • In Europe, the number of cases is high but stable in Spain, while the increase in daily cases continues in France.
  • Daily cases are slowly trending down in Sweden, and the randomized population testing supports other evidence that the prevalence of the virus in the population has decreased.
  • In the Nordics, daily cases have increased slightly in Denmark and Norway during the weekend. Daily cases per million inhabitants are now higher in Norway and Denmark than in Sweden.
  • In the Baltics, daily cases are increasing in Estonia. In Latvia and Lithuania, cases have also increased over the weekend after a small drop last week.

Policy

  • WHO does not expect widespread vaccinations against the coronavirus until the middle of next year.
  • In Norway, more than 1100 people have been quarantined for exposure to the virus.
  • Finland’s contact tracing app koronavilkku was published last week. The app has already been downloaded by around 30% of the citizens.
  • France plans to spend EUR 100 bn (4% of GDP) to pull its economy out of a deep coronavirus-induced slump. The plan contains green commitments in the amount of EUR 30 bn.
  • Swedbank expects the ECB governing council to keep its monetary policy and forward guidance unchanged at its meeting this Thursday. However, given stuttering recovery, weak inflation and a stronger currency, strong verbal intervention is warranted. Read more here

Economic effects

  • Euro area's CPI was negative for the first time in more than four years in July at -0.2%. Core CPI also fell sharply to 0.4% which is the lowest ever recorded.
  • In the US, the unemployment rate dropped to 8.4% in August from 10.2% in July.
  • In Sweden, wages increased by only 1.1% y/y in June. 


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 


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