The Organisation for Economic Cooperation and Development (OECD) has revised its growth forecasts for Switzerland downwards for the next two years due to a global economic slowdown.
After a strong 2018 (+2.5%), gross domestic product (GDP) growth should slow in 2019 (+1%), the OECD said on Tuesday. This compares to its earlier forecast last November of +1.6%.
The situation should improve in 2020 (+1.5%) as global trade recovers, the Paris-based policy forum said.
Household consumption in Switzerland should gradually pick up (+1.2% and +1.5% for 2019 and 2020, respectively). Meanwhile, exports are expected to stagnate this year before recovering in 2020 (+3.4%).
Price inflation should remain modest over the next two years, 0.5% and 0.7%, respectively, which are well below the Swiss National Bank objective of 2%.
OECD said a lack of skilled workers, particularly in the technical, scientific and computer fields, remains a problem for Swiss-based companies and the number of unfilled positions continues to rise. At the same time, immigration is slowing, and the Swiss population is getting older.
The forum recommends greater efforts to encourage more women to study science, technology and engineering, as well as increased immigration levels from non-EU countries.
The global economy is expected to grow by only 3.2% this year as growth in trade flows is nearly halved this year to only 2.1%, the OECD said in its biannual outlook.
It said economic growth in China and the United States could be lower by 2021 and 2022 if the two countries do not end their tit-for-tat tariffs in their dispute that has dampened the global economic outlook.
The global trade slowdown has also taken a toll on the euro zone, with expected growth this year at 1.2% before rising to 1.4% in 2020.
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
IMF predicts Swiss growth to slow to 1.1% in 2019
This content was published on
The Swiss economy is likely to slow in 2019 followed by a “moderate” recovery in 2020, the International Monetary Fund (IMF) says.
This content was published on
Worsening international conditions will have a negative impact on Switzerland’s export-driven economy, says the Swiss Economic Institute (KOF).
China slowdown and European populism unnerve luxury watchmakers
This content was published on
A stuttering start to the year for exports of Swiss watches has put brands on alert ahead as the Baselworld fair opens in Basel this week.
This content was published on
After some years of steady but low growth, the Swiss economy expanded by 2.5% in 2018 on the back of a positive global situation.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.