Swiss Economic Institute expects GDP to contract 3.6%, an improvement from August’s update of 4.7% with a projected 3.2% growth in 2021 in its baseline scenario, according to the KOF press release. If the pandemic continues, GDP will fall 4.9%, while 2021 growth will be 1.5%. The easing of the pandemic situation has improved the economic outlook, but rising new infections is causing uncertainty.
- Under the baseline scenario, Swiss does not expect the economy to return to pre-crisis levels until at least the end of 2021
- Under the negative scenario of rising infections, GDP will not return to pre-crisis levels until at least 2023
- Swiss economy recovered partially in Q3 2020, after a severe recession in the first half of the year.
Swiss Franc is weakening on the economic outlook. CHFUSD is down 0.26%
