The Nordic region has weathered the impact of the Covid-19 pandemic reasonably well. In 2020, economic activity contracted at a much lower rate than many markets across Europe. Norway, for instance, saw its economy shrink by just 0.8% over the year. Sweden, by contrast, saw its gross domestic product fall by 2.8%, marginally outperforming Finland and Denmark, which registered contractions of 2.9% and 3.3%, respectively, according to data from the International Monetary Fund. This resilient macroeconomic performance owes much to the foundations of the region's economy, which is built on strong social welfare systems across most markets. In addition, the Nordic countries are highly digitised relative to other economies in Europe. Finance and commerce, as well as the provision of government services, have mostly moved well beyond analogue technology. As a result, the private sector was able to adjust to the 'new normal' of a global pandemic with ease. Nordic banks, in particular, are at the vanguard of the region's digitised economy - a fact that partly contributed to their robust performance in 2020.
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