Switzerland's economy is expected to experience its sharpest downturn in decades this year due to the coronavirus pandemic, the government said on Tuesday.
Gross domestic product will drop 6.2% in 2020, the State Secretariat for Economic Affairs (SECO) said on TuesdayExternal link, in the worst downturn since 1975.
Government economists predict unemployment to rise to 3.8% this year, as foreign trade suffers, consumer spending shrinks and companies emerge slowly from lockdown.
The SECO forecast was nonetheless a slight improvement from the 6.7% GDP downturn predicted in April.
The government expects a gradual recovery during the second half of 2020 and into 2021 (expected GDP growth 4.9%). But this will depend on numerous factors such as whether there is a second wave of the disease followed by severe restrictions, and assuming that lay-offs and corporate bankruptcies remain limited and that demand from abroad slowly returns to normal levels, SECO said.
Government economist Ronald Indergand told Reuters that Switzerland’s economy could lose more than $100 billion in output due to the fallout from the coronavirus pandemic.
“On a per capita basis the downturn is going to be as bad as the mid-1970s, if not worse,” said Indergand. “It is going to take years to get over this. The economy is only going to get back to its previous level by 2022.”
Meanwhile, the KOF Swiss Economic Institute at ETH Zurich said on Tuesday that it expects GDP to fall by 5.1%, compared to an earlier forecast of 5.5% (May estimate). It said GDP should increase by 4.3% in 2021, significantly less than an earlier estimation.
Switzerland to introduce flight passenger database
This content was published on
Switzerland plans to introduce a flight passenger database to collect and process personal data in a bid to combat terrorism and serious crime.
Government plans to invest over CHF16bn in Swiss rail network
This content was published on
The federal government intends to invest CHF16.4 billion ($18.1 billion) in railway infrastructure between 2025 and 2028, CHF2 billion more than for the current period.
Swiss to vote on pension reform and biodiversity in September
This content was published on
Swiss citizens will vote on occupational pension schemes and a biodiversity initiative on September 22, the Federal Council announced on Wednesday.
Ukraine peace talks: 50 countries have confirmed participation
This content was published on
To date, 50 countries out 160 invited delegations have confirmed they will attend the Ukraine peace conference, held in central Switzerland in mid-June, according to Swiss public radio, RTS.
Federer-backed On boosts forecast after sneaker demand rises
This content was published on
Swiss footwear company On Holding AG posted strong first-quarter revenue, boosted by demand for its running shoes and new line of training apparel.
Michael Schumacher’s watches fetch CHF4 million at Swiss auction
This content was published on
Watches belonging to Formula 1 great Michael Schumacher sold for around CHF4 million ($4.41 million) at auction house Christie's in Geneva on Tuesday.
Macron will attend Swiss summit on Ukraine, says Zelensky
This content was published on
French President Emmanuel Macron will attend the peace conference on Ukraine at the Swiss Bürgenstock resort next month, according to Volodymyr Zelensky.
This content was published on
A global ranking comparing how nations cope with coronavirus finds that Switzerland is the safest place to be, with room for improvement.
OECD forecasts drop in Swiss economic growth in 2020
This content was published on
Even though measures to fight Covid-19 were less strict than in other countries, Switzerland will still see its GDP fall by 7.7%.
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.