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SWISS ECONOMY

Swiss economic slump is ‘less serious than feared’

Switzerland's economy has withstood the coronavirus pandemic and should be able to return to its pre-crisis level at the end of next year, a government agency said on Monday.

Published: 13 October 2020 00:10 CEST
Swiss economic slump is 'less serious than feared'
The forecast for Switzerland's economy is less dire than a few months ago. Photo by AFP

According to the State Secretariat for Economic Affairs (SECO), after Covid-19 restrictions were relaxed in April, “the Swiss economy started to swiftly recover, with both consumer and investment demand exceeding expectations in the second quarter”. 

“Overall, the first half of 2020 is less negative than assumed in the June forecast”, the agency added.

Swiss GDP will drop 3.8 percent in 2020, the largest decline the country has experienced since 1975, SECO said.

However, this figure is much lower than the prediction made in June, which expected a decline of 6.2 percent.

SECO also expects an average annual unemployment rate of 3.2 percent against a forecast of 3.8 percent in June.

READ MORE: Coronavirus: Switzerland sees economic resurgence despite fears of second wave 

This renewed optimism is based on a solid recovery from the end of April, when containment measures ended.

According to SECO, the first half of 2020 was marked by a strong return to consumption and investments, with limited recourse to partial unemployment.

However, not all economic sectors are out of the woods yet: part of the manufacturing industry, as well as the international tourism and hospitality sector “have experienced a weaker recovery”.

But despite the slow rebound, a recent study shows that he country’s economy remains the strongest in the world. 

Another study also found that Switzerland’s capacity to rebound from the pandemic is among the best in the world.

This is due to the combination of “world class governance with high levels of social capital and high social resilience. The Swiss also have strong financial systems, manageable debt levels and good health system resilience”. 

 


 

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COMPETITIVENESS

Two Swiss business schools crack FT top ten

Two Swiss business schools ranked among the top ten in the latest Financial Times rankings of European business schools.

Published: 1 December 2014 23:32 CET
Two Swiss business schools crack FT top ten
Students at the University of Saint Gallen. Photo: University of Saint Gallen

The University of Saint Gallen in northeastern Switzerland ranked sixth in the 2014 list of 80 European schools.

Lausanne-based IMD in the canton of Vaud ranked ninth on the list, which was topped by the London Business School, followed by HEC Paris and Spain’s IE Business School and Esade Business School.

Insead in France came fifth on the list.

The University of Saint Gallen, saw its position rise from seventh on the FT list in 2013.

With 77 percent of its faculty international, the university offers a Masters in Management degree that the FT ranks first in the world.

Graduates from the university’s MBA programme can expect to earn an average of $102,158 three years after graduating, according to the figures released.

IMD, whose ranking remained unchanged from last year, is rated by FT as having the best executive education open programmes in the world.

With 94 percent of its faculty regarded as international, the English-language institute is ranked third for its custom executive education programmes.

Graduates from IMD’s full-time MBA program can expect to earn $142,446 a year three years after graduation, FT said.

This is one of the highest salaries for business school MBA graduates and compares with $156,553 for the London Business School.

For more on the FT European rankings, check here.

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