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From an economic point of view, it would be good to test more, because it would make it easier to go back to a more normal behavior. Without large-scale testing, which hasn't happened, there is an uncertainty about infections. This leads to an unnecessary large social distancing and big uncertainty in the economy which is bad for business.

From an economic perspective, the government should have introduced support measures for companies faster, measures that were right to take because the reason for the crisis wasn’t down to them or to structural problems.

«We need help for more industries, such as tourism»

The first package of support were loans with a large interest attached (6.7 percent). These loans were in very small demand.

The government afterwards introduced more measures of support. They were good but it became obvious that they were designed more for manufacturers and less for small services companies. In Sweden, we currently have many companies, particularly smaller ones, that can’t access any support measures.

Looking forward, it is important to improve the accuracy of the measures taken and to make them tenable for a long time. We need in particular help for more industries, such as tourism.

What are the major consequences of this crisis?

One of many consequences of the crisis may be persistently higher unemployment. This leads to personal misfortunes but also costs for society if there aren’t major structural reforms introduced as an answer.

Sweden had an already weak labor market before the crisis, with high unemployment and a lot of long-term unemployed. Those who already are unemployed will find it even harder to get a job when companies fail and more people will be looking for employment. Therefore the risk is that unemployment becomes permanent at a higher level after the crisis.

«The digital transformation is good for growth, jobs and the economy»

Moreover, the crisis will lead to major consequences for the global supply chains (which will become more regional), the financing of public welfare systems (which will need more tax money), the financial framework and monetary policy.

Do you see a silver lining as well?

The crisis will, like other crises before, lead to structural changes in the economy and on the labor market.

Companies tend to evaluate their business in times of crises and make them more efficient. The crisis therefore will accelerate the technological transformation of society, the way companies produce and how people will work.

A lot of people have learned how to work remotely, how to shop online with the help of digital tools. This will continue and become more pertinent once the crisis reaches the next phase. The digital transformation affects some industries more than others, but overall it is good for growth, jobs and the economy.

Stefan Westerberg is the chief economist of the Stockholm Chamber of Commerce. He previously worked as an adviser to the trade minister in the ministry of foreign affairs, with special responsibility for trade policy. He served under three different trade ministers and for seven years. Westerberg studied at the universities of Barcelona and Stockholm. He has a Master in Economics from Stockholm University.