VIEW: SEB note that "the COVID-19..........>

RIKSBANK: VIEW: SEB note that "the COVID-19 pandemic has brought the world

economy to an unprecedented halt. Record-sized government and central bank

stimulus measures will have their main impact only after a delay. This autumn,

unemployment will climb to levels not seen since the 1930s. According to the

main scenario in SEB's new Nordic Outlook forecast, GDP in the developed

countries will shrink by 7 per cent in 2020, followed by an upturn of 5 per cent

in 2021. Despite a more V-shaped recovery than in comparable historical crises,

the GDP level at the end of next year will be well below earlier forecasts -

about 5 percentage points lower in the OECD - and unemployment will be far

higher. Sweden's relatively gentle lockdown strategy will limit the downturn in

its economy compared to the other Nordic countries, but the nearly 7 per cent

drop in GDP we expect this year is still the largest in modern times. Meanwhile

unemployment in Sweden will climb to a record-high 14 per cent. General

government debt will reach 50 per cent of GDP and the Riksbank expand its bond

purchases by another SEK 300 billion."