Sweden’s ignoring the coronavirus wouldn’t work everywhere, says Goldman Sachs

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Sweden’s ignoring the coronavirus wouldn’t work everywhere, says Goldman Sachs
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Sweden says severe restrictions make little sense for a virus that’s likely to be around for a long time

People queue outside a Stockholm liquor store during the coronavirus pandemic. Picture: AFP/JONATHAN NACKSTRAND

Swedish schools, gyms, bars and shops have remained mostly open during the pandemic. On Tuesday, a report showed the Swedish GDP may be contracting a lot less than economies elsewhere. But Goldman says none of that is evidence that other countries adopting Sweden’s hands-off response to Covid-19 would achieve similar results. That’s because a number of uniquely Swedish demographic factors have shielded it from the worst, a team of Goldman economists led by Sven Jari Stehn said in a note.

Sweden’s death rate, though not as bad as in places such as the UK and Spain, is much worse than in neighbouring Denmark, Norway and Finland. But importantly, the development has at no point overwhelmed Sweden’s healthcare system.

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