Swiss perspectives in 10 languages

IMF predicts Swiss growth to slow to 1.1% in 2019

Zurich high street
In 2019, Swiss growth is expected to be subdued due to a combination of factors, including subdued domestic demand, a sustained regional slowdown, global trade tensions and Brexit © Keystone / Gaetan Bally

The Swiss economy is likely to slow in 2019, with gross domestic product growth expected to hit 1.1%, followed by a “moderate” recovery in 2020, the International Monetary Fund said on Monday. 

The IMF said in a concluding statement, published on Monday following a mission to Switzerland and an annual evaluationExternal link, that a “sustained regional slowdown, intensification of global trade tensions and a disruptive Brexit” would adversely affect the Swiss economy. 

Other factors that are expected to impact growth include weak external demand, subdued domestic demand and the absence of biennial international sporting events. Inflation is expected to remain just below 1% this year. 

The IMF growth figure is slightly lower than the latest Swiss National Bank (SNB) forecast from a few days ago (1.5%), while the State Secretariat for Economic Affairs (SECO) also predicted 1.1% growth for 2019. In 2018, GDP growth stood at 2.5%. 

National risks

Rachel van Elkan, head of the IMF mission to Switzerland, told reporters in Bern on Monday that in general Swiss monetary policy had helped mitigate the effects of the strong franc and stabilise inflation. Public finances were strong, but more government investment could help support the economy, van Elkan noted.

At the national level, the IMF sees risks in Swiss real estate and in mortgage loans, where 85% of banks’ assets are concentrated. Pension funds and insurance companies are also highly exposed, it added.

The IMF also noted that uncertainties over corporate taxation and old-age pensions could increase volatility for business operations.

In their assessment, the IMF also recommended the Swiss authorities beef up the role of the Swiss Financial Market Supervisory Authority (FINMA) and increase the number of staff. It said the financial watchdog should be able to carry out more on-the-spot checks, especially on the largest banks.

The IMF delegation conducted the review of Switzerland from March 21 to April 1.

Popular Stories

Most Discussed

News

No Swiss bank in phase with environmental objectives

More

Swiss banks failing environment, says WWF

This content was published on None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.

Read more: Swiss banks failing environment, says WWF
UNRWA provides emergency assistance to just over one million Palestine refugees, or about 75 per cent of all Palestine refugees in Gaza, who lack the financial means to cover their basic food.

More

Lazzarini: no alternative to UNRWA in Gaza

This content was published on The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.

Read more: Lazzarini: no alternative to UNRWA in Gaza

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR