Switzerland 2020: Year of pause?

The shutdown in Switzerland happened, like everywhere in the surrounding European Union. Switzerland imports 70% of its goods from and exports 52% of its production to the EU, and is the EU’s third-biggest trading market. Switzerland was happy that, for example, the building industry, which accounts for about 6% of GDP in most parts of the country, could continue thriving. People were able to move about, but of course, the shops, in general, were closed and working from home was strongly recommended.

Working from home meant that many people sat for hours in telephone or online conferences, but the business activity in banks, insurances, trade and other areas was not impacted so much. Tourism, with nearly 20 billion CHF revenues, is important for Switzerland, being about 3% of GDP, but not as important as the pharmaceutical and chemical industry, which represented about 10% of GDP. The fall in GDP in 2020 is assessed by experts to be in the region of 6%, and in 2021 it is thought to rise by about 5% again, which of course will not compensate for the loss. Unemployment might rise to 3.6%.

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Switzerland 2020 - Ariel Davidoff