Swedish GDP predicted to shrink by 7 percent in 2020

2:18 min

The Swedish economy will shrink significantly this year with gross domestic product expected to fall by 7 percent, according to a prognosis by the National Institute of Economic Research.

At the start of the month, the Institute reported a "particularly deep economic downturn" was on the horizon with GDP growth expected to shrink by 3.2 percent.

On Wednesday, that figure was revised downward given the pace and unpredictability of the coronavirus outbreak.

According to the report, Sweden's service sector has been hit hard but the biggest blow has been dealt to exports.

Click play to hear Erik Spector of the Institute discuss the latest forecast.