DBRS Morningstar Releases Commentary: Nordic Economies: Not Immune but More Resilient to the Coronavirus Disease (COVID-19)

DBRS Morningstar released a commentary assessing the potential drivers behind the Nordic economies' greater resilience to the Coronavirus Disease (COVID-19) shock thus far. The coronavirus pandemic has dealt a substantial blow to the Nordic countries, but the contraction in output has been relatively modest compared with most peers.

In DBRS Morningstar's view, the key factors that explain the Nordic economies' higher economic resilience to the pandemic include: (1) pandemic incidence and overall level of restrictions, (2) economic structures that are less reliant on sectors most heavily affected by physical distancing/mobility restrictions, (3) remote-work capabilities and overall digital skills, and (4) strong public sector positions that underpinned the policy response.

“The fact that the Nordic economies were ahead of the curve in terms of digital skills and infrastructure as well as remote working experience could have facilitated a smoother transition to the new pandemic norm”, says Javier Rouillet, Vice President at DBRS Morningstar. “While uncertainty about the evolution of the virus could impede the recovery, given the structural features of Nordic economies and the renewed push for investment in digital and greener infrastructure, they are expected to lead the European economies in surpassing their pre-pandemic output levels”, says Rohini Malkani, Senior Vice President at DBRS Morningstar.

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The commentary is available at www.dbrsmorningstar.com.

For more information on the impact of the Coronavirus Pandemic, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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