Switzerland is unlikely to experience a recession this year
Despite possible energy supply problems, the Swiss economy “continues to do well” according to Eric Scheidegger, head of the Economic Policy Department of SECO.
Switzerland will not experience a recession this year despite possible energy supply problems, said Sunday the head of the Economic Policy Department of SECO, which forecasts, in the event of an unfavorable scenario, zero growth for the year. next.
“For the time being, the Swiss economy is continuing to do well” despite the impact of the war in Ukraine on energy prices, Eric Scheidegger told the daily SonntagsZeitung, excluding support measures such as advantages or benefits. tax breaks, “neither necessary nor useful” according to him.
It is up to the companies to anticipate possible electricity shortages during the winter, mentioned since the spring, he also said: “They have time to prepare” and “it is up to them to take this risk into account.
Zero growth in 2023
“We may have to revise our forecast for next year downwards. The figure will be released on September 20. We do not, however, expect a recession this year, he said. If there are persistent interruptions in production in the European Union and we ourselves run out of gas, it will be problematic”.
“In our negative scenario, we expect zero growth in 2023, instead of growth of almost 2%,” he said. According to Mr. 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.
On the inflation side, Switzerland is an “island of happiness” and the rise in prices should fall back by the end of the year, he said: “At 3.4%, inflation is much lower than in other countries. Excluding fresh food, energy and gasoline, inflation is at 2%”.
AFP
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