Switzerland Today
Greetings from Bern,
If this Friday started off with the disappointing announcement about some actors not attending the Locarno Film Festival in support of Hollywood strikes, the day definitely took a different turn with two rather encouraging news stories.
On the one hand it turns out that Switzerland has the highest saving rate in Europe, on the other the luxury watch industry in the country is booming thanks to young people.
All of this in today’s briefing. But first, let’s take a look at the news.
In the news: Hollywood strikes, citizens filming police operations and the new digital motorway sticker.
- Some guests of honour of the 76th edition of the Locarno Film Festival in southern Switzerland will not be attending the event in solidarity with the film industry strikes in Hollywood. However, the organisers assured that the screenings will go ahead as planned.
- Cantons oppose moves to ban citizen filming of police arrests in Switzerland. Police say they are being misrepresented by filming of arrests by members of the public, but cantonal police commanders say that a general ban on filming “is not feasible and not conceivable”.
- From August 1, the motorway tax stickers required in Switzerland will also be available electronically. This will make it easier and more convenient for drivers, but the Swiss government might lose up to CHF17 million ($19.5) in revenue.
High wages and savings rates: Switzerland is on top of Europe.
High inflation rates, a banking crisis and the ongoing war in Ukraine are putting a lot of pressure on every European country, including Switzerland. However, the Alpine country still seems to be on the winning side thanks to its high wages and household savings rates, as reported by RSIExternal link.
The Swiss financial comparison platform, HelloSafeExternal link, conducted a study to compare the savings rates of the European countries and found that Switzerland has the highest net household savings rate in the continent.
In 2021, Switzerland recorded a savings rate of 21.9% which was 12 points higher than the European Union (EU) average of 10.3%. Although Switzerland has had a higher rate since 2011, the study claims that it was the pandemic that really boosted household savings. In 2020 the Swiss net savings recorded a 30% increase compared to 2019.
As far as the rest of the ranking is concerned, Switzerland was followed by Ireland, with a savings rate of 20.2% and the Netherlands, with 17.5%. At the very bottom of the list are Finland, with -1.7%, Slovakia with -2.6%, Greece -3.1% and Portugal -5.4%.
The data used for this study came from the Organisation for Economic Co-operation and Development (OECD) 2021 and 2022 national accounts and the rates represent the savings held by households in relation to the gross domestic product (GDP) of each country.
And if the economy is still slow, teenagers might save the luxury sector.
As it often happens – especially in Switzerland – not all financial sectors are struggling. The luxury watches industry, for example, is booming and surprisingly, it’s all thanks to young people, Swiss public television, SRFExternal link, reported.
The demand for luxury Swiss watches is at an all-time high, exceeding the CHF24 billion ($27.6) mark for exports for the first time last year.
What surprised both manufacturers and the media is that many young people, including Millennials and Gen Z, are driving this trend. “The reason for the great demand is an Instagram effect,” Armin Strom co-founder, Claude Greiser, told SRF. Since luxury watches have become a hot topic on social media, the clientele has become younger and younger and Greiser says he even has 15-year-old customers.
Another big change in the watch industry is the emergence of a second-hand market. If second-hand watches used to be considered a step down the social ladder, now they’re becoming increasingly popular and this gives “younger generations the confidence to invest in a watch, knowing that they can sell it again when they need the money,” concludes Greiser.
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