by The Swiss economics ministry has downgraded its growth forecast for 2022 due to the war in Ukraine. But it still predicts a solid post-pandemic upswing. After a couple of years impacted by Covid-19, 2022 should yet see Swiss gross domestic product (GDP) grow by 2.8%, the State Secretariat for Economic Affairs (Seco) said on MondayExternal link in a quarterly assessment – down from the 3% predicted last December. While the war will have an impact, Swiss economic ties with Russia and Ukraine are relatively limited, Seco said. It did not explicitly mention the sanctions recently placed on Russian businesses and individuals by various western nations, including Switzerland. The forecast also does not take into account the pessimistic scenario of a “massive shortage
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swissinfo Business and Economy, Business, Featured, newsletter
This could be interesting, too:
Frank Shostak writes Assumptions in Economics and in the Real World
Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again
Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar
Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?
The Swiss economics ministry has downgraded its growth forecast for 2022 due to the war in Ukraine. But it still predicts a solid post-pandemic upswing.
After a couple of years impacted by Covid-19, 2022 should yet see Swiss gross domestic product (GDP) grow by 2.8%, the State Secretariat for Economic Affairs (Seco) said on MondayExternal link in a quarterly assessment – down from the 3% predicted last December.
While the war will have an impact, Swiss economic ties with Russia and Ukraine are relatively limited, Seco said. It did not explicitly mention the sanctions recently placed on Russian businesses and individuals by various western nations, including Switzerland.
The forecast also does not take into account the pessimistic scenario of a “massive shortage of energy or raw materials in Europe”, which would lead to a “significant contraction” of the economies of Switzerland’s main trading partners.
Banks more downbeat
The Seco forecast is also a bit more optimistic than that released today by the biggest Swiss bank UBS, which revised its growth predictions for the year from 2.8% to 2.5%.
Rising energy prices and a stronger Swiss franc will have a negative effect on Swiss trade and exports, the bank said. However, it expects the appreciation of the Swiss currency – often seen as a safe haven in turbulent times – to weaken again throughout the year.
As of March 11, the Swiss franc was worth just under €0.98. Last week, the currencies approached parity, with the franc reaching its highest level against the euro since January 2015.
Seco said the strong currency is also holding back inflation, which it nevertheless expects to rise significantly this year to reach 1.9%. In December, it had predicted inflation of 1.1% for 2022.
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You Might Also Like
Credit Suisse sacks managers over Greensill scandal
2021-12-26
The Credit Suisse bank has fired the managers overseeing a multi-billion-dollar fund strategy linked to the now-defunct Greensill Capital.
Swiss tourists stayed close to home in 2020
2021-12-10
New data on Swiss travel habits during the first year of the Covid-19 pandemic show fewer overnight stays, less air travel and a collapse in trips beyond the borders of Europe.
Supply chain bottlenecks and Omicron hamper Swiss economic recovery
2021-12-09
Swiss economic experts expect a significant economic slowdown as supply chain bottlenecks, inflation and pandemic restrictions persist in many parts of the world.
Swiss banks implicated in trading cartel investigation
2021-12-03
The European Commission has ended an investigation of five banks, including UBS and Credit Suisse, who colluded in a foreign exchange spot trading cartel.
How the pandemic has widened inequalities in Swiss watchmaking
2021-11-21
Driven by strong Chinese demand, Swiss watchmaking is recovering after suffering one of its biggest economic shocks in 2020. But the crisis has further widened the gap between the few brands that take the lion’s share of the profits and the rest of the industry.
Geneva-Lausanne train link remains suspended
2021-11-12
The holes were caused by tunneling work under the tracks carried out by a private company, which was working on a thermal energy project using water from Lake Geneva to heat an industrial zone not far from the train line. Keystone / Jean-christophe Bott
The main rail link between Geneva and Lausanne in southwestern Switzerland will not re-open until Friday morning, Swiss Federal Railways (SBB/CFF) has confirmed. The line has been suspended since Tuesday after land collapsed near the tracks.
This content was published on November 11, 2021 – 09:57
November 11, 2021 – 09:57
Keystone-SDA/sb
Holes that appeared between tracks at Tolochenaz, near Morges in canton Vaud, on Tuesday still require major work, which is proving more complicated than expected, the Federal Railways said.Two holes
Swiss expats thrown limited banking lifeline by digital disruptor
2021-11-10
Digital bank Yapeal is offering basic accounts to Swiss people living in neighbouring countries that undercut the rising fees of mainstream competitors.
Global capital flows: how poor countries finance the rich
2021-10-12
It’s an economist’s conundrum: global capital, instead of flowing from rich countries to poor countries, actually moves in the other direction. Each year hundreds of billions of dollars leave developing countries and land in the coffers of rich countries like Switzerland.
Tags: Business,Featured,newsletter