IFBC UpDate – Market Report

IFBC UpDate – Market Report

Current developments and assessments on macroeconomic subjects


Following a problem-ridden 2020 a hopeful first half of 2021 recorded a recovery of the global economy at record speed and rising stock markets. With the discovery and rapid spread of the Omicron virus and the restrictive actions to fight the pandemic, confidence was dampened in the second half of 2021 and the positive economic trend from the previous semester was broken again. In addition, increasing supply problems, production shortages and rising inflation rates affected the economic activity and development across the globe and slowed down the recovery process.


In many countries, inflation has accelerated surprisingly sharply in recent months and is currently above the target ranges of the respective central banks. This development is being driven particularly by the rise of raw material and energy prices as a result of the strong global demand and the rapid economic recovery, which has led to inflation rates higher than 5% in some leading economic areas.

Real GDP growth rate Switzerland


Inflation Switzerland


In comparison, inflation in Switzerland was at moderate 1.5% as per end of 2021. Explanations can be a low energy intensity of the Swiss economy, the strengthening of the Swiss franc, an already very high price and wage level and the fact that supply shortages have relatively little impact on prices.


The questions remain, as to whether a new post-pandemic normality will begin with the expected entry into the endemic phase and whether the inflation rates have reached their peak and if they will steadily decline again, as expected by many analysts.

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


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