Switzerland suffered from a brake on its economy at the end of the year, recording a 0.3% increase in GDP in the last quarter. According to a first estimate from the Ministry of the Economy (Seco), growth stands at 0.9% for the whole of 2019, after an increase of 2.8% in 2018. The small, very open economy suffers from the international economic situation less favorable. It has returned to " its lowest level of growth " since 2015 and 2016, noted Seco, noting that " the export-oriented industry has lost momentum ".
Impact of the coronavirus
Business-sensitive sectors, such as the machinery and metals industry, experienced a further decline in revenues. Chemicals and pharmaceuticals continued to support growth but " could not keep up with the dynamics of previous quarters, " said the ministry. Switzerland is very sensitive to demand from the European Union, where it sells more than half of its exports. Economists expected a stronger deceleration, given the stagnation of GDP in Germany, the largest export market for Swiss companies, and the decline of 0.1% in France and 0.3% in Italy, its two other major trading partners.
They now fear the impact of the coronavirus epidemic. The country is exposed on " many fronts," reacted David Oxley of Capital Economics, between the risks on investments, major events such as the Geneva Motor Show which had to be canceled, or its dependence for its labor requirements for cross-border workers.