[Business] News Sweden’s economy in roller-coaster mode Sweden, COVID-19 and GDP
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By Peter Berlin he 2nd quarter of 2020 (April through June) saw the worst ravages of the coronavirus to date, and the world economy suffered accordingly.
Amazon to launch Swedish website
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n a recent press release, Amazon announced that it will establish a Swedish website – www.amazon.se. In the past, the company’s Swedish customers have been re-routed primarily to its German website. The new site will offer small businesses in Sweden an opportunity to reach a much wider customer base both in Sweden and abroad. Delivery times will also be shorter than before. At the same time, Amazon will be a formidable competitor to Swedish enterprises, especially in the areas of electronics, household appliances and sports equipment. Swedish businesses therefore view the launch of the website with a mixture of enthusiasm and trepidation. The Swedish/Danish mail distribution service Postnord is in negotiations with Amazon to become the
Compared to the 1st quarter, Sweden’s GDP fell by 8.6 percent. The equivalent preliminary figures for some other major economies were as shown in the table. The comparison suggests that Sweden’s decision to forgo strict lockdown has so far paid off as far as the
national economy is concerned. Only time will tell whether this conclusion holds steady as the pandemic continues to ravage societies and economies around the world.
latter’s primary distributor in Sweden. If the negotiations succeed, the agreement will be a lifesaver for Postnord which may otherwise have to file for bankruptcy. The decline in Postnord’s fortunes is mainly the result of the Internet replacing letters as the primary conduit of written communication. Another factor is the company’s poor track record when it comes to delayed and lost parcels. Amazon’s Prime service, on the other hand, guarantees deliveries within two working days – a performance to which Postnord will have to commit.
Swedish krona on the rebound
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Comparison chart of GDP percentage drop in the 2nd quarter of 2020 (April through June)
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fter hitting a 17-year low against the US dollar and a 10-year low against the Euro in March, the Swedish currency has strengthened 9 percent in value against most major currencies. One cause of the rebound is thought to be the fact that Swedish banks offer a higher interest rate on deposits compared to most foreign banks. Another factor is the Swedish approach to dealing with the COVID19 pandemic, which has mitigated the extent of decline of the country’s economy. Aug 13, 2020: 8.6757
SEK per USD
9.0242 8.9080 8.7919 8.6757
Jul 15
Jul 25
Aug 4
Aug 14
The strengthening of the Swedish currency over time relative to the US dollar means that fewer SEK are needed to buy one USD. Source: Oanda
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Swedish Press | September 2020 9
