08
Jun
Swiss GDP down -2.6% with a more brutal shock in store for Q2
-10% contraction expected in Q2. Economic recovery will take place in H2. SNB will not change course. Weakening of the franc. Gradual rebound of long-term rates. Reduce equity risk.
Key points
- Switzerland’s GDP contracts more sharply in Q1 than experts expected
- The drop in GDP in Q1 is actually due to only two weeks of confinement
- Switzerland withstands Covid-19 shock more successfully
- Further -10% shock to GDP in Q2?
- What prospects for H2?
- SNB remains discrete but active
- Shift in outlook for rates
- Beware, euphoria already replacing panic
- Valuations once again high for Swiss equities