Supply chain bottlenecks and Omicron hamper Swiss economic recovery
The pandemic has created major challenges at ports delivering goods around the world.
Copyright 2021 The Associated Press. All Rights Reserved
Swiss economic experts expect a significant economic slowdown as supply chain bottlenecks, inflation and pandemic restrictions persist in many parts of the world.
This content was published on
2 minutes
Keystone-SDA/jdp
Português
pt
Gargalos no abastecimento e ômicron dificultam a recuperação econômica suíça
On Thursday, the State Secretariat for Economic Affairs (SECO) announcedExternal link that the economic expert group has lowered the growth forecast for Switzerland for 2022 to 3% from 3.4%. It expects a growth rate of 2% for 2023 as “the economy normalises”. This would still be an above-average growth rate.
While the Swiss economy has recovered well in the first half of the year with GDP rising above pre-crisis level of Q4 2019, SECO writes that “international supply and capacity bottlenecks are putting pressure on the industrial sector and causing sharp price increases globally”.
Inflation in Switzerland is predicted to increase moderately to 1.1% on average for the year due to increased prices for energy and materials. Inflation rates are expected to peak in the current winter period. The Swiss inflation rate is still lower than global average. The inflation ratExternal linke in the United States was 6.2% in October – the highest in more than three decades.
The uncertainty surrounding the pandemic, most recently in connection with the Omicron variant, also pose risks to the economy. Assuming there are no severe restrictions such as lockdowns, economic recovery is not, however, expected to come to a standstill in the medium term.
The expert group expects the situation to improve in the middle of next year as supply chain problems dissipate and consumer spending, investment and exports increase.
However, the recovery could be delayed further if global capacity bottlenecks last longer and inflation leads to more price pressure and higher interest rates. If China’s real estate sector falters, this could also weigh heavily on the global economy, with consequences for Switzerland.
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 court rejects special assistance for student with disabilities
This content was published on
The Swiss Federal Court has rejected an application for special assistance from a student with disabilities at the federal technology institute ETH Zurich. Such assistance would inadmissibly lower the requirements for studying, it ruled.
Police arrest 15 drug dealers in Verbier in southern Switzerland
This content was published on
Swiss and French police have arrested 15 suspected drug dealers operating in the mountain resort of Verbier in southern Switzerland.
New European space tech centre in Switzerland launches its first project
This content was published on
The European Space Deep-Tech Innovation Centre (ESDI), launched in collaboration with the Paul Scherrer Institute (PSI), is to be located in the immediate vicinity of the PSI in northern Switzerland.
Swiss Federal Railways launches campaign for safety on public transport
This content was published on
The Swiss Federal Railways is launching a campaign for greater respect and safety on public transport, with posters to go up in stations and on trains starting next week.
Swiss scientists to use AI for improved weather and climate forecasts
This content was published on
MeteoSwiss and the Swiss Data Science Center have signed a four-year agreement to make greater use of AI in meteorology and climatology going forward.
This content was published on
Prices of owner-occupied homes rose in the third quarter of 2024 by 0.5%, with inflation affecting both apartments and single-family houses, says the Federal Statistical Office.
This content was published on
The honey harvest is projected to be lower than usual this year, as Swiss beekeepers report harvesting an average of just 16kg of honey per bee colony.
More young refugees in Switzerland following vocational training
This content was published on
More than half of young refugees and temporarily admitted persons between the ages of 16 and 25 are now in training. This is significantly more than five years ago.
One in five Swiss children suffers psychological abuse at home
This content was published on
In Switzerland, one in five children suffers psychological violence, and one in three has witnessed psychological violence between parents, says the association Kinderschutz Schweiz.
Switzerland’s economic outlook brightens as pandemic eases
This content was published on
Swiss gross domestic product (GDP) is expected to grow by 3.2% in 2021, upgraded from 2.2% in the previous forecast, the OECD reports.
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.