Switzerland faces recession in 2020 due to pandemic
Saturday, 04 25 2020, Category: Economy, Country: Switzerland
Switzerland is headed towards a severe recession this year due to the economic fallout of the coronavirus, experts warn. If the pandemic is brought under control, the Swiss economy should rebound strongly in 2021.
The BAK Economics Institute, a Basel-based think tank, says the collapse of private spending will trigger a global recession. For Switzerland, this means reduced service exports due to a drop in demand for tourism and events.
On Monday, the think tank predicted a fall in gross domestic product of 2.5% in 2020. That contrasts with its previous forecast which estimated a growth of 1.3% for this year. In an optimistic scenario where the health crisis is quickly under control, the economy should rebound strongly by 4.3% in 2021.