Swedish c.bank says surge in infections to slow recovery short term

Sweden's economy has begun to rebound from the coronavirus pandemic and measures to halt its spread, but the recent pick up in new infections will slow the recovery down and longer term risks remain elevated, the central bank said in a regular report.

"The increased spread of the coronavirus during the autumn means that restrictions and changes in behaviour will slow down an economic recovery in the near term," the central bank said in a statement accompanying its Financial Stability Report.

"In the longer run... the support measures could build up vulnerabilities."