• 24. März 2020
  • 16:40
  • Hinterland

Swiss economy expected to enter a recession

Switzerland is one of the countries most affected by the coronavirus. Economists expect a recession and a decline in gross domestic product (GDP) of up to 3 % instead of a previously estimated growth of 1.3 %. According to BAK Economics, an independent Swiss economic research institute, and other organisations forecasting uncertainties are extraordinarily high. However, the pandemic will lead without a doubt to a major decline in growth in Switzerland in the first half of the year. This is due to the fact that both the domestic as well as the export industry are affected by the current downturn. There is a high potential for economic damage especially in March, April and possibly May. The overall forecast for the rest of the year depends on the duration of the far-reaching measures to combat COVID19 in Switzerland.

A record GDP slump of almost 6 % is expected for the second quarter of 2020. The Swiss economy loses around 4 billion francs for every week the lockdown continues. Still, Switzerland assumes that the economy will recover quickly after the pandemic ends. The most important sector in this process will be the pharmaceutical industry accounting for almost half of Swiss exports.

The rail connections from/to Switzerland to/from the port of Hamburg are still running smoothly. However, capacity has been reduced by 20 % due to already declining demand for transport.

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