The leisure and entertainment industry in Switzerland have not been affected very hard by the government's anti-Covid measures, says the KOF report.
Keystone/Urs Flüeler
Researchers say the government’s economic support has been a key factor in avoiding a wave of bankruptcies in Switzerland despite the Covid-19 pandemic.
More than 20% fewer companies went out of business between March and July than in the same period last year, the KOF Economic Institute said on Monday.
“The number of bankruptcies has not been significantly higher than expected in any major region or sector of the economy,” a statement said.
The researchers noted that even the hospitality sector and the entertainment industry have been affected “very little”.
However, the economic downturn was evident across all major regions of the country, but to varying degrees, the institute said.
They included easier access to a compensation scheme for short working hours, a massive lending programme and a ban on debt collection which were put in place at the beginning of April.
However, the authors of the study – the KOF instituteExternal link of the Federal Institute of Technology in Zurich and the digital business information company, Bisnode – warn it is too early to sound the all-clear.
They say some bankruptcies might simply have been postponed and experience in previous crises shows that the incidence of bankruptcies increases gradually rather than abruptly.
Unemployment
Meanwhile, the current unemployment rate in Switzerland remained stable at 3.2% in July.
About 148,900 people were registered as unemployed according to the State Sectretariat for Economic Affairs (SECO). That slightly fewer than in June, but more than 1% higher than in July 2019.
Boris Zürcher, head of the labour unit at SECO said an initial increase in the number of jobless people in March slowed down since April.
Zürcher also said he did not expect a massive wave of layoffs later this year.
More
More
Swiss economy to suffer worst downturn since 1975
This content was published on
Switzerland’s economy is expected to experience its sharpest downturn in decades this year due to the pandemic.
This content was published on
The "Dubai chocolate" has also caused a rush in Switzerland: queues formed outside the Lindt chocolate factory in Kilchberg, canton Zurich, on Saturday morning.
This content was published on
Stargazers currently have the chance to spot shooting stars in the night sky. Until November 30, the Leonid meteor shower is lighting up the darkness.
Nationalisation suggested to save Red Cross Museum
This content was published on
The director of the International Red Cross and Red Crescent Museum in Geneva is calling for a national debate on the institution's future.
Climate: 224 Swiss companies announce CO2 reduction targets
This content was published on
A total of 224 companies from Switzerland have joined the Science Based Targets initiative (SBTi), committing to CO2 reduction targets that are in line with the Paris Climate Agreement.
Swiss political class divided over reform of EU asylum pact
This content was published on
As a result of the EU's Migration and Asylum Pact, Switzerland must adapt five laws linked to the Schengen/Dublin agreements.
OECD forecasts drop in Swiss economic growth in 2020
This content was published on
Even though measures to fight Covid-19 were less strict than in other countries, Switzerland will still see its GDP fall by 7.7%.
This content was published on
Last year saw a record number of bankruptcy procedures opened in Switzerland, with almost 14,000 cases involving bust businesses and individuals.
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.