IFBC UpDate – Market Report
Current developments and assessments on macroeconomic subjects
Looking back at 2020, we will remember first and foremost the impact of COVID-19.
In March, when most European countries began closing their borders and sending their citizens into the first lockdown, the markets reacted nervously. Share prices plummeted and credit spreads reached all-time highs.
At the beginning of summer, however, the situation had calmed down considerably and hopes that the virus would be over sooner than expected increased. Spurred on by central banks’ and governments’ measures to strengthen the economy, the markets also picked up speed again and increasingly recovered.
When the number of infections began to rise again in autumn and a second lockdown became apparent in many countries, the reaction of the financial markets was much calmer than it had been in spring.
Real GDP growth Switzerland
Since summer, the forecasts by Seco and KOF for 2020 have improved significantly. While in summer a GDP decline of -6.2% and -4.7%, respectively had been assumed, an average decline of only 3.4% is expected at the current stage.
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