Retail Savings & Investments in Sweden: Coronavirus (COVID-19) Sector Impact

Retail Savings & Investments in Sweden: Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.

The Swedish government estimates that the country’s GDP will decline by at least 4% in 2020, while unemployment will rise to 9%. A slowdown in economic activities and the falling employment rate will lead the country’s economy into a recession, which will impact the wealth industry.

This report focuses on the impact of the Coronavirus outbreak on the Swedish economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.

Scope

- The Swedish retail investment mix is well diversified compared to many other markets. Higher allocations in equities and mutual funds allows for a dynamic market in normal conditions, but also means it will contract more than even some hard-hit markets in Southern Europe.
- Deposits are expected to the be sole beneficiary of the crisis, with Swedes modestly increasing the rate at which they save into these low-earning but safe products.
- With an expected recovery from the COVID-19-induced recession expected to be well underway in 2021, there will be a rally in the value of Swedish retail investors’ holdings as well.
- An uncertain macroeconomic environment is changing the face of the HNW investment landscape, with sectors such as health and tech expected to power forward while wealth connected to retail and manufacturing will lag behind.
- Swedish HNW individuals have made their fortunes predominantly through earned income, with entrepreneurship a close second. Sweden’s world-class startup ecosystem, which is becoming an important driver for wealth creation, should be relatively unscathed by the crisis. However, wealth mangers could do more to target these key sources of growth.

Reasons to Buy

- Make strategic decisions using top-level revised forecast data on the Swedish retail savings and investments industry.
- Understand the key market trends, challenges, and opportunities in the Swedish retail savings and investments industry.
- Receive a comprehensive insight into the retail liquid asset holdings in Sweden, including deposits, mutual funds, equities, and bonds.