Experts warn of hit to economy without Russian oil and gas
Renouncing Russian oil and gas would have serious consequences for the Swiss economy, an expert from the KOF Swiss Economic Institute has told a Sunday newspaper.
This content was published on
2 minutes
Keystone-SDA/Sunday papers/ilj
Português
pt
Especialistas alertam para impacto na economia sem petróleo e gás russo
If imports were to be cut off, for example in the wake of tougher sanctions against Russia, Swiss gross domestic product (GDP) would fall by 3-4 percentage points, spread over two years, according to calculations by KOF published in the SonntagsZeitung.External link The cost to the average Swiss: around CHF3,000 ($3,210).
A slump of this magnitude is “big enough to cause a recession in normal times”, KOF expert Yngve Abrahamsen told the newspaper. But the fact that the economy is recovering after the coronavirus could help to limit the damage, he said.
Nevertheless, Abrahamsen believes it would be “feasible” for Switzerland to rely less on Russian commodities. He said that some of the Russian supplies could be replaced by other sources. A reduction in strategic reserves could also help in a transition period. However, this would mean higher prices, warned the KOF researcher.
Neutral Switzerland last month decided to join the European Union’s sweeping economic sanctions against Russian individuals and entities – in an historic step for the country. But Swiss sanctions have not specifically targeted commodities.
On Saturday, Swiss Economics Minister Guy Parmelin warned of the global consequences should sanctions be imposed on Russia for the commodities trade. He said this was not just about oil and gas, but also food, as some countries rely on grain from Ukraine and Russia.
More
More
Parmelin raises concern over sanctions on commodities
This content was published on
Swiss Economics Minister Guy Parmelin has warned of the global consequences should sanctions be imposed on Russia for the commodities trade.
Le Matin DimancheExternal link also took a look at the domestic household impact of the war in Ukraine. It warned that after gas and petrol, food prices were also likely to rise.
According to John Plassard from Mirabaud Bank, people can expect an increase of 10%-15% this year for basic products like butter, eggs, milk, bread and vegetable oils.
The country’s big supermarket chains have not yet raised process, but “the current crisis will certainly make its impact felt over the next months,” a spokesperson for Migros told the newspaper.
Meanwhile, Swiss unions have called for urgent measures for the Swiss economy, due to the risk of unemployment rising, the SonntagsZeitung reported. The tabloid SonntagsBlickExternal linkhighlighted a call from the Trade Union Federation for a rise in wages to offset losses in purchasing power.
This content was published on
Nemo brought the Eurovision Song Contest to Switzerland with his victory on Saturday evening in Malmö, Sweden. It is Switzerland's third victory in the history of the music contest.
Switzerland abstains from vote on Palestinian bid for full UN membership
This content was published on
On Friday, Switzerland abstained from the vote at the General Assembly on granting the Palestinians new rights at the United Nations (UN).
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.
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
Swiss trading hub adapts to new wartime reality
This content was published on
After Switzerland joined EU sanctions targeting Russia, its commodities trading sector is having to face up to new economic realities.
This content was published on
Our daily lives depend on it, yet commodity trading is an opaque business. Here's how Switzerland came to play an important role in this industry.
This content was published on
Swiss federal asylum centres have reported extremely high numbers of refugees from Ukraine registering for protected S status.
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.