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- Swiss economy expected to shrink by worst rate in decades
Swiss economy expected to shrink by worst rate in decades
Reuters reports that Switzerland's economy will suffer its worst downturn in decades during 2020 as the coronavirus pandemic damages output and jobs, the government said on Wednesday, but the downturn will be less severe than initially feared.
Swiss gross domestic product will fall 6.2% this year, the State Secretariat for Economic Affairs (SECO) said, the worst downturn since 1975, when the country was hit by the aftermath of the oil price shocks.
Unemployment is forecast to rise to 3.8% this year, as foreign trade suffers, consumer spending shrinks and companies emerge slowly from shutdowns imposed to halt the spread of the COVID-19 virus.
Still, the forecast was a slight improvement from the 6.7% downturn in GDP foreseen by the Swiss government's economists in their April statement, and compares favourably with other European countries.
The Swiss government expects a gradual recovery during the second half of 2020, provided a massive second wave of the disease along with severe restrictions does not occur.
In 2021, SECO forecasts underlying economic growth of 4.9%, although unemployment will remain high by Swiss standards at 4.1%.
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