Well prepared to take on the challenge
- The Nordic and Baltic economies will be hard hit by the Covid-19-induced shock due to their small size and relative openness.
- Strong economic fundamentals and a timely reaction to the health crisis ensure that the countries are in an advantageous position to take on the challenge.
- The crisis gives a chance to push for bolder and greener policies, as well as advance reforms aimed at streamlining the growing public sector and further tailoring the economy and human capital to the digital post-corona world.
Tackling and surviving the Covid-19 shock requires extra-fast thinking, and an innovative government response, as well as digitally apt, creative, and flexible businesses and citizens. The Nordics and Baltics are rather well prepared to take on the challenge.
However, the crisis sheds light on a number of pre-existing conditions that need to be addressed to ensure sustainable long-run growth in the post-corona world. These include, for example, the inadequately funded and unreformed health care system in the Baltics, Norway’s reliance on oil, Sweden’s polarised labour market, and the less-than-stellar educational outcomes in many of the region’s economies.
The crisis is a chance to push for bolder policies and reforms that have previously been postponed due to the lack of sense of urgency or political will. As a result, the Nordics and Baltics can emerge from this fight even stronger, more competitive, and more sustainable.
For more information please contact Līva Zorgenfreija, Chief Economist in Latvia, firstname.lastname@example.org
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