06
Mar
Caution recommended as Swiss GDP threatened by Covid-19
Covid-19 will also affect Switzerland’s GDP. As expected, the franc is in high demand in the
short term. The growth outlook has deteriorated. Panic is finally impacting equities.
Key points
- +0.3% growth in Switzerland in Q4 raised hopes of a good start to 2020
- Growth was still driven by private and public consumption in Q4
- Following improvement in leading indicators, a major deterioration is now likely
- Emergence of an exogenous factor likely to significantly impact Switzerland’s economy
- Covid-19 has changed the economic scenario and the stock market outlook for 2020
- Covid-19 strengthening the Swiss franc
- The SNB once again in the starting blocks?
- Covid-19 reversing the trend in rates
- Panic taking over in equity markets
- Precautionary principle takes priority
