Swiss GDP to grow 4% in ’21,global economy set to recover by mid-2021:Govt. economist

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Swiss GDP to grow 4% in ’21,global economy set to recover by mid-2021:Govt. economist

The Swiss economy, banking- and tourism-oriented one of the world’s most advanced free market economies that contracted as much as by 6 per cent last year following a rise of 0.9 per cent in 2019, was expected to harness a growth momentum more than double of its usual rate over the next couple of years, while the world’s second-ranked economy by per-capita earnings could witness its GDP (Gross Domestic Product) surging as much as 4 per cent in both 2021 and 2022 as both service and manufacturing sector activities recouped later last year, the Swiss Government’s top economic expert Eric Scheidegger said in an interview with a Zurich-based weekly NZZ am Sonntag published earlier on Sunday.

Aside from that, the NZZ am Sonntag report was also quoted Scheidegger as saying that the Swiss economy could smell a “positive scenario” in a near-term outlook with outputs recovering at a quicker-than-anticipated pace, while the Swiss Government’s Chief Economist had forecasted that a pandemic-shattered global economy would highly likely to resume regaining its footings from a pandemic driven slump by the middle of 2021 which in effect would create a rubicund complexion for the world’s 18th-largest economy that happens to be extremely export-oriented.

Swiss economy expects to grow by 4% in both 2020 & 2021

In point of fact, latest remarks from Scheidegger came forth weeks after the Swiss State Secretariat for Economic Affairs (SECO) had told in a December forecast that the state-backed trade body was expecting a GDP growth of 3 per cent in 2021 and 3.1 per cent in 2021 following a 3.3 per cent plunge in output last year, Switzerland’s worst economic downturn in more than four decades and a half.

Nonetheless, over the past decade, the world’s second-ranked economy by GDP per capita has been growing at a pace of 1.7 per cent on an average. However, voicing a strident tone over the country’s recovery from a pandemic-led fiscal slump, Scheidegger said to NZZ am Sonntag, “In our positive scenario, we expect a strong recovery in the global economy from the summer onwards.

In this case, Switzerland could achieve growth of around 4% in both 2021 and 2022. Alongside consumption, investment is the second key driver: companies typically hold back in this respect during crises. But as soon as they have planning certainty again, many companies will focus on the upswing.