Switzerland seems to be less affected than previously thought

The Swiss economy suffered significantly less damage from the lockdown measures in the second quarter than its larger neighbours. However, the country’s economy shrank most in at least four decades.

New figures show that Swiss gross domestic product (GDP) fell by 8.2% in the three months up to the end of June, which is better than economists had anticipated. By comparison, large neighbour Germany saw a 9.7% decline in the economy and even higher shrinking rates in France and Italy.

The Swiss figures reflect the economic pain felt all over the world. Governments have tried to limit the damage with huge support packages, and the big question now is how to find the way up and prevent the worst blows on the labour market, while state aid is being reduced again.

The Swiss economy seems to be heading towards a shrinkage of about 6% by 2020, according to economists. That would be the strongest year crimp since the 1970s. But a new lockdown to contain the spread of the virus could worsen the situation. As in many European countries, The Coronas attacks in Switzerland are on the increase, and the authorities in Zurich recently announced a new restriction for major meetings. Also, people there now have to wear mouth caps while shopping.

Louise Roth is the youngest member of WeeklyNewsReview team. Despite the young age Louise is interested in serious topics. Her main interests and education is all about economics and politics. But in our team she is the most productive do-it-all member, so she has to write on a variety of topics.