Economic crisis: “At the moment, the Swiss economy continues to do well”, says SECO

PostedAugust 7, 2022, 8:39 PM

Economic crisis“At the moment, the Swiss economy continues to do well,” says SECO

In an interview published on Sunday, the Confederation’s chief economist Eric Scheidegger assures us that our country should not experience a recession this year.

As far as inflation is concerned, Switzerland is an “island of happiness” and price rises should decline by the end of the year, Eric Scheidegger of SECO said on Sunday.

SECO

Switzerland will not experience a recession this year, said Sunday the head of the Economic Policy Department of SECO, Eric Scheidegger. “For the moment, the Swiss economy continues to do well” despite the impact of the war in Ukraine on energy prices, he assures in an interview with the “SonntagsZeitung”, excluding measures of support such as benefits or tax breaks, “neither necessary nor useful”.

The Confederation’s chief economist predicts, in the worst case, zero growth next year. “We may have to revise our forecast for next year downwards. The figure will be released on September 20. However, we are not expecting a recession this year,” he said. “In our negative scenario, we expect zero growth in 2023, instead of growth of almost 2%,” he said. As far as inflation is concerned, Switzerland is an “island of happiness” and the rise in prices should fall back by the end of the year: “At 3.4%, inflation is much lower than In other countries. Excluding fresh food, energy and petrol, inflation is at 2%.

Preparing for electricity shortages during the winter

It is up to companies to anticipate possible electricity shortages during the winter, which have been mentioned since the spring, he adds: “They have time to prepare” and “it is up to them to take this risk in account”. “If there are persistent interruptions in production in the European Union and we ourselves run out of gas, it will be problematic,” he admits.

According to Eric Scheidegger, the Swiss economy is less sensitive to variations in energy prices than other European countries, because gas only accounts for 5% of its consumption. He indicated that the government would discuss possible measures to reduce the energy bill in the coming weeks, such as a reduction in health insurance premiums for low-income households.

(AFP)

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