by Restrictions imposed to fight the Covid-19 pandemic, such as store closures, will have a major impact on Swiss GDP in 2020, the OECD predicts. Keystone / Laurent Gillieron Even though restrictions aimed at slowing the spread of Covid-19 were less strict than in other countries, Switzerland will still see its GDP fall by 7.7%, if the pandemic is contained by summer. Gross domestic product will not rebound until 2021, according to the forecast published by the Organisation for Economic Cooperation and Development on Wednesday. Despite a shorter lockdown period than other countries, household consumption and investments have collapsed, the Paris-based organisation said. Private spending is expected to fall by 6.8% in 2020 and rebound by nearly as much in 2021. The
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swiss Info, COVID-19, Featured, Latest News, newsletter, OECD
This could be interesting, too:
Michael Njoku writes Totalitarianism Begins With A Denial of Economics
Nachrichten Ticker - www.finanzen.ch writes US-Wahl treibt Bitcoin über 90’000 US-Dollar – wie Anleger vom neuen Krypto-Hype profitieren können
Jim Fedako writes Subjectivity and Demonstrated Preference: A Possible Paradox
Connor O'Keeffe writes The Context Behind Donald Trump’s “Takeover” of the American Right
Restrictions imposed to fight the Covid-19 pandemic, such as store closures, will have a major impact on Swiss GDP in 2020, the OECD predicts. Keystone / Laurent Gillieron
Even though restrictions aimed at slowing the spread of Covid-19 were less strict than in other countries, Switzerland will still see its GDP fall by 7.7%, if the pandemic is contained by summer.
Gross domestic product will not rebound until 2021, according to the forecast published by the Organisation for Economic Cooperation and Development on Wednesday.
Despite a shorter lockdown period than other countries, household consumption and investments have collapsed, the Paris-based organisation said. Private spending is expected to fall by 6.8% in 2020 and rebound by nearly as much in 2021.
The OECD predicts exports will bear the brunt of a slow economic recovery and the appreciation of the Swiss franc. It forecasts a drop of 7.6% in exports in 2020 and a rebound of 4.2% next year.
A second wave of the coronavirus, however, could spell even more trouble for the economy, with an increased risk of bankruptcies, job losses and lower investment. In such a scenario, GDP could fall by 10% in 2020 and recover by only 2.3% in 2021, the OECD said.
However, the country’s low level of public debt provides fiscal leverage for authorities to support companies, especially small and medium-sized firms, which have been severely affected by Covid-related closures, it added. Many businesses have been able to re-open their doors beginning in May, after the federal government eased restrictions.
You Might Also Like
Swiss develop first see-through mask
A fully transparent surgical mask that filters out germs but allows facial expressions to be seen has been developed by Swiss scientists. Caregivers should be able to wear them from the summer of 2021.
What Did Everyone Think Was Going To Happen?
Honestly, what did everyone think was going to happen? I know, I’ve seen the analyst estimates. They were talking like another six or seven perhaps eight million job losses on top of the twenty-plus already gone. Instead, the payroll report (Establishment Survey) blew everything away, coming in both at two and a half million but also sporting a plus sign.The Household Survey was even better, +3.8mm during May 2020. But, again, why wasn’t this expected?
Davos aims to coax elite out of isolation in January
The World Economic Forum has vowed to hold its annual meeting in Davos in January, testing the willingness of a globetrotting elite to resume the high-powered networking that has been frozen by the coronavirus pandemic.
‘Green’ aviation fuel aims to power planes by 2030
The Covid-19 pandemic has overshadowed the climate crisis, but with the gradual return of consumption and travel, concerns about global warming are resurfacing. A Swiss start-up is developing an aviation fuel produced solely with water, solar energy and CO2. Will this emission-neutral fuel put an end to “flight shame”?
NGOs urge Swiss banks to ease developing country debt
A group of 11 NGOs has called on Swiss banks and government ministries to consider offering relief on billions in debt owed by developing nations. The consortium says that the coronavirus pandemic has increased economic pressure on the poorest countries.
Parliament approves extra CHF14.9 billion for Covid relief
A further CHF14.9 billion ($15.5 billion) has been agreed by parliament to cope with the coronavirus pandemic. Most of it will go towards unemployment insurance, which finances short-time work compensation.
WEF unveils dual physical and virtual Davos summit in 2021
The World Economic Forum (WEF) annual conference in Davos will take place in January with fewer physical participants – but with a new “virtual” connection to more than 400 cities around the world.
Lockdown led to big jump in worker productivity
Thanks to more focus and flexibility, productivity per worker increased by up to 16% during the Covid-19 lockdown in Switzerland, a study has calculated. The study by the Swiss Trade Association (SGV), reported in the NZZ am Sonntag newspaper, found that while hours worked dropped by 10% in the first quarter of 2020, GDP sank by just 2.6%.
Tags: COVID-19,Featured,Latest news,newsletter,OECD