The Economy Report, October 2020

On Swedish municipal and regional finances.

Knowledge about covid-19 has increased since the spring, but there is still considerable uncertainty. We do not know how severe the increase in transmission we are now seeing will be or what consequences it will have.

As a basis for our calculations, we have made an assumption that its effects on the economy will decline gradually over the course of this year and next year. Just now we are seeing a strong gdp bounce-back all over the world, including in Sweden. But it will still be a long time before we can assume a normal situation. Previous risks persist, and are now also accompanied by major risks of a deterioration in the functioning of the economy, not least in the labour market.