Supply chain bottlenecks and Omicron hamper Swiss economic recovery
The pandemic has created major challenges at ports delivering goods around the world.
Copyright 2021 The Associated Press. All Rights Reserved
Swiss economic experts expect a significant economic slowdown as supply chain bottlenecks, inflation and pandemic restrictions persist in many parts of the world.
This content was published on
2 minutes
Keystone-SDA/jdp
Português
pt
Gargalos no abastecimento e ômicron dificultam a recuperação econômica suíça
On Thursday, the State Secretariat for Economic Affairs (SECO) announcedExternal link that the economic expert group has lowered the growth forecast for Switzerland for 2022 to 3% from 3.4%. It expects a growth rate of 2% for 2023 as “the economy normalises”. This would still be an above-average growth rate.
While the Swiss economy has recovered well in the first half of the year with GDP rising above pre-crisis level of Q4 2019, SECO writes that “international supply and capacity bottlenecks are putting pressure on the industrial sector and causing sharp price increases globally”.
Inflation in Switzerland is predicted to increase moderately to 1.1% on average for the year due to increased prices for energy and materials. Inflation rates are expected to peak in the current winter period. The Swiss inflation rate is still lower than global average. The inflation ratExternal linke in the United States was 6.2% in October – the highest in more than three decades.
The uncertainty surrounding the pandemic, most recently in connection with the Omicron variant, also pose risks to the economy. Assuming there are no severe restrictions such as lockdowns, economic recovery is not, however, expected to come to a standstill in the medium term.
The expert group expects the situation to improve in the middle of next year as supply chain problems dissipate and consumer spending, investment and exports increase.
However, the recovery could be delayed further if global capacity bottlenecks last longer and inflation leads to more price pressure and higher interest rates. If China’s real estate sector falters, this could also weigh heavily on the global economy, with consequences for Switzerland.
Popular Stories
More
Climate adaptation
Why Switzerland is among the ten fastest-warming countries in the world
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Swiss martyr beatified in Barcelona by Catholic Church
This content was published on
François-Benjamin May (1870-1909), a member of the Marist Brothers congregation, has been recognised as a 'blessed' by the Catholic Church.
Prevention and tech could help save billions on Swiss healthcare costs, says Deloitte
This content was published on
By focusing on prevention and technology, it would be possible to reduce Switzerland's healthcare bill by CHF30 billion a year by 2040, according to Deloitte Switzerland.
Environment director warns of increasing climate-related risks in Switzerland
This content was published on
The director of the Swiss Federal Office for the Environment (FOEN) has warned of increasing climate-related risks in Switzerland in an interview with SonntagsBlick on Sunday.
Gotthard traffic queue hits 11km at start of holiday season
This content was published on
The start of the summer holidays saw a long traffic jam in front of the Gotthard tunnel on Saturday. Traffic jams between Erstfeld and Göschenen in canton Uri were up to 11 kilometres long early in the morning.
This content was published on
The water temperature of the Rhine River could rise by up to 4.2° degrees Celsius by the end of the century due to the warming planet, scientists warn.
This content was published on
The Federal Council wants to explore the possibilities of joining the European Union’s €800-billion rearmament programme without compromising Swiss neutrality.
Switzerland’s economic outlook brightens as pandemic eases
This content was published on
Swiss gross domestic product (GDP) is expected to grow by 3.2% in 2021, upgraded from 2.2% in the previous forecast, the OECD reports.
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.