Nordic Economic Policy Review 2022: COVID-19 Effects on the Economy in the Nordics

Abstract

The paper reviews economic developments and policy measures in the Nordic countries during the pandemic focusing in particular on the unconventional policies deployed to protect incomes, jobs, and firms in the short run. The recession was the deepest but also shortest on record, which indicates that the underlying economic policy logic of preserving production capacity and job matches to make a swift recovery possible worked. The policies also maintained domestic demand. The general structure of the Nordic societies, with a high level of trust and cooperation, a high degree of digitalization, and a comprehensive social safety net, contributed to the recovery process.

State of the Nordic Region 2024

“…addition, the number of young people classi ied as neither in employment, education, nor training (NEETs) also rose during the pandemic(Andersen, Holden & Honkapohja 2022). Since a high proportion of the people in this age group are studying, the NEET rate may be a more useful indicator.…”