Economy

"Biggest drop in GDP since WWII"

The Swedish economy is shrinking faster than it has done since the Second World War, according to the latest economic prognosis by the National Institute of Economic Research. The Swedish GDP is expected to fall by 5,4 % this year, which is lower than the 3,9 % the Institute had predicted in March.

The unemployment is also expected to go up, reaching 9 % at the end of this year, and staying over 11 % in 2010 and 2011. According to the Institute's head of department, Kerstin Hallsten, half of those now leaving the labour market might never return.