Empty shops and purchasing streets have contributed to an financial contraction in Switzerland. Keystone / Laurent Gillieron

The Swiss financial system shrank 2.9% final 12 months following Covid-19, the worst annual contraction for the reason that aftermath of the 1975 oil disaster.

This content material was printed on February 26, 2021 – 13:50

swissinfo.ch

However official figures present the second wave of autumn had a much less detrimental impact on the financial system, rising 7.6% within the third quarter earlier than slowing to + 0.3% within the final three months. of the 12 months.

The pandemic has immediately affected a variety of companies and jobs – greater than the monetary disaster which triggered GDP to contract -2.1% in 2009.

In December, the Group for Financial Co-operation and Improvement (OECD) forecastsExterior hyperlink a contraction of the world gross home product (GDP) of -4.2%. The euro zone is predicted to say no by -7.5%. From this attitude, it seems that the Swiss financial system has withstood the pandemic higher than its neighbors and plenty of different nations. Among the many main economies, solely China noticed a progress of two.3% in 2020.

The sectors most affected in Switzerland final 12 months have been, unsurprisingly, the hospitality sector (-20.8%) and the humanities, leisure and recreation (-7.7%), the Report of the State Secretariat for Financial Affairs (Seco) FridayExterior hyperlink.

Family spending fell considerably in 2020 as outlets, eating places, bars and leisure amenities have been pressured to shut. One other issue was unemployment, which hit a decade-high 3.7% on the finish of January this 12 months.

Public spending has elevated dramatically because the state has been pressured to bail out the financial system via wage subsidies, emergency enterprise loans and a slew of different spending.

The coronavirus had a low-impact on the finance and building sectors in Switzerland, which skilled marginal progress in 2020. The manufacturing sector was additionally much less affected by Covid-19 than the monetary disaster of 2008/9, in accordance with Seco. Manufacturing output even rose 1.4% within the final three months of 2020, after affected by a troublesome interval earlier within the 12 months.

Earlier this week, electrical engineering, machinebuilding and metals trade group Swissmem expressed optimism that manufacturing output will enhance within the coming months, largely due to elevated commerce. with China.

Seco will launch its financial forecast for 2021 on March 11.



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