Swiss economy
Swiss companies are currently assessing their situation as worse than during the financial crisis in 2009. And it is expected to get worse in the coming months.
This is how entrepreneurs in various industries assess the situation.
–Photo: Keystone
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–The KOF business situation indicator has dropped to its lowest level in more than 15 years. A stable sales development is assumed for food. Otherwise, sales expectations are very negative overall.
–KEYSTONE
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–“The hospitality industry is overwhelmed by the pandemic, business slumps,” writes the KOF. Almost all accommodation establishments and restaurateurs state that the business activity is significantly reduced. The companies are currently not hoping for an improvement.
–KEYSTONE
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- Entrepreneurs are currently more pessmistic than in the financial crisis 10 years ago.
- The main reason for this consumer crisis is the lack of demand.
- All industries are affected.
- Hospitality, services and wholesale are particularly difficult.
- Most entrepreneurs do not expect any improvement soon.
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The corona virus continues to have a firm grip on the economy. As the business situation indicator of the ETH economic research center KOF shows, entrepreneurs in Switzerland currently assess their situation even more negatively than during the financial crisis ten years ago. The main problem here is the lack of demand and the consequent decrease in consumption – in addition there are difficulties with the supply of goods.
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Basically, all sectors are currently suffering – the hardest hit are the hospitality, service and wholesale sectors. The demand there has collapsed to such an extent that the economists at the KOF speak of a crash: “The hospitality industry is overwhelmed by the pandemic,” says a statement.
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«Historical challenge»
For the service providers, who are often rather robust, the current situation is a “historical challenge”. The pandemic-related lawsuits are particularly pronounced in the areas of art, entertainment, recreation, transport, storage and other economic services. These include, for example, travel agencies, temporary employment agencies and gardening and landscaping.
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You can see KOF assessments of the individual industries in the picture section above.
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And many of the more than 4,500 private entrepreneurs surveyed don’t think it will get better soon. They assume that the employment situation will deteriorate due to the continued low demand. Expectations are negative in all sectors; in the other services area, the indicator even drops by over 35 percentage points from 14.3 to minus 21 percent.
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Billion francs
The lockdown is costing the economy dearly. The companies are experiencing massive drops in sales. Many are currently trying to secure jobs with short-time work. In addition, many additional loans have to be taken out and their liquidity secured. The federal government wants to cushion these costs with aid packages. Meanwhile, the total expenditure has been increased to CHF 95 billion.
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