Government economists say the impact of the pandemic in Switzerland is slightly less severe than previously feared. This is partly thanks to the mix of industries in Switzerland and the decision to rapidly lift coronavirus restrictions, according to the State Secretariat for Economic Affairs (SECO).
“In the second quarter of 2020 gross domestic product (GDP) experienced its sharpest decline since the quarterly figures were first calculated in 1980,” SECO said in a statementExternal link on Monday.
GDP was down by 7.3% in the second quarter, compared with a forecast of 8.2% in June. But SECO said the authorities’ decision to rapidly end coronavirus lockdown restrictions in June and the economy’s “industry mix” had helped prevent an even more drastic slump in GDP.
The chemical and pharmaceutical industries – two of the biggest sectors – increased in value by 0.3% in the second quarter, stabilising the result for the manufacturing industry as a whole (down by 10.3%).
But they were not enough to offset heavy losses in other sectors. The hotel and catering sectors, for example, fell by 50.4% in the second quarter compared with the first quarter. The arts, entertainment and recreation sector was down by 38.7%.
Consumer spending slump
Demand fell across the board. Consumer spending slumped by 8.1% following the closures and strict restrictions put in place to fight the pandemic. Meanwhile, investment in equipment and software also contracted sharply by 10%.
Figures were revised up for exports of goods (-9.4% to -6.5%) and services (-15.9% to -15.3%). These sectors have been hit by abrupt falls in demand from abroad.
The overall economic output this year is now expected to be 5% lower than in 2019, compared with a 6.2% forecast in June. The unemployment rate ( previously expected to be 3.8% by the end of 2020) is now predicted to be 3.5%.
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.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
This content was published on
In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
This content was published on
As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
This content was published on
After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
Parliament agrees extra millions for Covid-19 budget
This content was published on
The Swiss parliament has given the green light to an additional CHF770 million requested by the government to manage the Covid-19 crisis.
Swiss government extends coronavirus economic support
This content was published on
The government will extend unemployment benefits by six months and plans to help cushion financial losses for public transport.
This content was published on
Switzerland’s watchmaking industry is likely to suffer the worst crisis of its history in 2020. But experts are confident it can recover.
Economic cost of pandemic will be enormous: SNB chief
This content was published on
In two newspaper interviews on Sunday, Jordan warned of significant job losses and an erosion of prosperity in the wake of the pandemic. The economy is currently operating at between 70% to 80% of normal levels, he told the SonntagsZeitungExternal link. “Many people may not yet be able to imagine what these numbers mean for prosperity…
Covid-19 is both threat and opportunity for Swiss biotech
This content was published on
Although the coronavirus pandemic is the Swiss biotech industry’s time to shine, it has left many smaller firms struggling to survive.
Switzerland facing biggest economic slump since 1975
This content was published on
In a revised forecast in the wake of the coronavirus pandemic, federal authorities predict GDP will contract by 6.7% in 2020.
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.