Swiss exports are expected to stagnate this year before recovering in 2020.
Keystone / Steffen Schmidt
The Organisation for Economic Cooperation and Development (OECD) has revised its growth forecasts for Switzerland downwards for the next two years due to a global economic slowdown.
After a strong 2018 (+2.5%), gross domestic product (GDP) growth should slow in 2019 (+1%), the OECD said on Tuesday. This compares to its earlier forecast last November of +1.6%.
The situation should improve in 2020 (+1.5%) as global trade recovers, the Paris-based policy forum said.
Household consumption in Switzerland should gradually pick up (+1.2% and +1.5% for 2019 and 2020, respectively). Meanwhile, exports are expected to stagnate this year before recovering in 2020 (+3.4%).
Price inflation should remain modest over the next two years, 0.5% and 0.7%, respectively, which are well below the Swiss National Bank objective of 2%.
OECD said a lack of skilled workers, particularly in the technical, scientific and computer fields, remains a problem for Swiss-based companies and the number of unfilled positions continues to rise. At the same time, immigration is slowing, and the Swiss population is getting older.
The forum recommends greater efforts to encourage more women to study science, technology and engineering, as well as increased immigration levels from non-EU countries.
The global economy is expected to grow by only 3.2% this year as growth in trade flows is nearly halved this year to only 2.1%, the OECD said in its biannual outlook.
It said economic growth in China and the United States could be lower by 2021 and 2022 if the two countries do not end their tit-for-tat tariffs in their dispute that has dampened the global economic outlook.
The global trade slowdown has also taken a toll on the euro zone, with expected growth this year at 1.2% before rising to 1.4% in 2020.
Popular Stories
More
Foreign affairs
Go to war or stay put? Ukrainian men in Switzerland face fresh dilemmas
Is reforming the Swiss pension system still possible, and if so, how?
Solutions still need to be found to meet the challenge of an ageing population and to improve the pensions of low-paid workers, the majority of whom are women.
Swiss to reduce administrative burden on farms from 2026
This content was published on
From 2026, the number of inspections of farms is to be reduced, without any loss of quality, said economics minister Guy Parmelin.
Swiss insurance boss proposes Singapore-style healthcare system
This content was published on
CEO of Swiss health insurer Sanitas has said that healthcare costs could be reduced if Switzerland were to follow the Singapore model.
Swiss minister talks crime and security in visit to the Netherlands
This content was published on
Swiss justice minister Beat Jans spent two days in the Netherlands discussing security, police cooperation and justice with international bodies.
Study finds more heavy metal detected in Swiss grassland
This content was published on
Copper and zinc can be expected to accumulate in the soil, particularly if farmyard manure is used for several years and is greater than the amount of nutrients absorbed by the grass. This was announced by the Federal Office for the Environment (FOEN) on Friday. The findings are based on the results of the seventh National Soil Monitoring of Switzerland (Nabo).
Lilo Baur wins Swiss Grand Prix for performing arts
This content was published on
The Swiss actress and theatre director Lilo Baur has received this year's Swiss Grand Prix for Performing Arts, also known as the Hans Reinhart Ring.
Court rules al-Qaeda supporter can stay in Switzerland
This content was published on
A Kurdish supporter of the Islamist terrorist network al-Qaeda can stay in Switzerland, the Federal Administrative Court has ruled. It has withdrawn the annulment of the man’s provisional admission.
This content was published on
The Office of the Attorney General of Switzerland (OAG) has closed criminal proceedings relating to the Swiss owners affected by the Volkswagen “Dieselgate” emissions scandal.
This content was published on
The employment outlook in Switzerland will remain stable towards the end of 2024, according to the KOF Swiss Economic Institute at ETH Zurich.
Swiss woman accuses Donald Trump of sexual assault
This content was published on
A former Miss Switzerland candidate has accused Donald Trump of sexually assaulting her in New York in 1993. The US Republican candidate’s campaign team has denied the accusations.
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.
Read more
More
IMF predicts Swiss growth to slow to 1.1% in 2019
This content was published on
The Swiss economy is likely to slow in 2019 followed by a “moderate” recovery in 2020, the International Monetary Fund (IMF) says.
This content was published on
Worsening international conditions will have a negative impact on Switzerland’s export-driven economy, says the Swiss Economic Institute (KOF).
China slowdown and European populism unnerve luxury watchmakers
This content was published on
A stuttering start to the year for exports of Swiss watches has put brands on alert ahead as the Baselworld fair opens in Basel this week.
This content was published on
After some years of steady but low growth, the Swiss economy expanded by 2.5% in 2018 on the back of a positive global situation.
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.