IFBC UpDate – Economic conditions

IFBC UpDate – Economic conditions

After a record year in 2019, the Swiss equity market continued to rise in January and February until prices collapsed in March 2020 due to the COVID-19 pandemic. While previously the trade dispute between China and the USA was omnipresent, it is now mainly the virus that sets the pace on the markets.


However, the development of the stock markets does not necessarily reflect the expected GDP growth. Central banks intervened strongly in the first half of 2020, which is reflected in increased share prices. At the same time, most countries have used fiscal measures to try to protect their country from excessive economic damage, especially the threat of bankruptcy.

Real GDP growth Switzerland


Inflation Switzerland


According to forecasts by Seco and KOF, the GDP of Switzerland is expected to decrease by an average of -6.2% and -4.7% respectively in 2020. In 2019, GDP had still grown by 1.0%. At the same time, a slight deflation is expected for 2020. In 2021, GDP is expected to grow by 4.3% on average, which would compensate for part of the GDP decline caused by the COVID-19 crisis.


A look at the global regions shows that the COVID-19 pandemic is likely to have a major impact, particularly on the European Union. According to average GDP forecasts, economic output in the EUR zone is expected to collapse by -8.6% in 2020.

To download the IFBC UpDate – Economic conditions, please click here (publication in German).


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