The virus outbreak has had a serious impact on economic growth, with consequences both for the British and Swedish economy. The outbreak has caused an unprecedented situation of a simultaneous supply and demand shock with disruptions in global supply chains and lower household spending. The global economy is expected to enter a recession with negative GDP growth in 2020. The British and Swedish government has undertaken comprehensive fiscal policy measures and cut interests rate in order to support businesses. 

The Swedish Government’s work in response to the virus COVID-19: 

• Medical certificate requirement during sick pay period to be suspended

• Sickness benefit qualifying day temporarily discontinued 

• Crisis package for jobs and transition 

• Crisis package for small enterprises in Sweden 

• Increased loan facilities and credit guarantees for Swedish businesses 

• 1 billion for culture and sport 

• Credit guarantees for airlines 

• Crisis packages for Swedish businesses and jobs 

• Municipalities and regions to receive compensation 

• Sick pay standard deduction to be discontinued 

• Additional funding for relevant government agencies 

• The appropriation for disease carrier’s allowance to be increased 

• Central government to assume sick pay responsibility for two months 

• Liquidity reinforcement via tax accounts proposed 

• A new system for short-term layoffs to be introduced 

The British government’s support for businesses through this period of disruption caused by COVID-19: 

• a Coronavirus Job Retention Scheme

• deferring VAT and Self-Assessment payments

• a Self-employment Income Support Scheme

• a Statutory Sick Pay relief package for small and medium sized businesses (SMEs)

• a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England

• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief

• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000

• the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank

• a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans

• the HMRC Time To Pay Scheme

For more information please visit:

Very serious situation for the global economy and the Swedish economy – Swedish Ministry of Finance

Pennnigpolitiskt Protokoll – Swedish Riksbank

Economic measures in response to COVID-19 – Swedish Ministry of Finance

COVID-19: support for businesses, gov.uk

HM Government Business Support