Europe’s Economic Slump Has Swiss Worried, Finance Chief Says

(Bloomberg) — Switzerland’s finance minister is concerned that the economic slump in the European Union and Germany will also hit Swiss companies, as both are among the most important trading partners of the country.

Addressing reporters at the World Economic Forum on Thursday, Karin Keller-Sutter said that it’s a problem for the Swiss if the EU and it’s biggest economy are struggling. German output just contracted for a second straight year, weighing on the bloc’s growth.

“Germany has always been the economic engine of the European Union, so it’s really to be hoped that the structural problems there will be solved,” she said in Davos. “That’s also in the interest of Switzerland.”

So far, the nation managed to keep a better economic record than its bigger neighbor. Output grew in all but one quarter since the Covid pandemic. This year, the government expects an annual increase of 1.5%.

Keller-Sutter also took over the rotating office of Swiss president at the beginning of the year, while remaining finance minister. The title is largely ceremonial, but includes perks like more power over the government’s agenda and representing Switzerland on the world stage.

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