Record Contraction Forecast from Switzerland!

The effects of the coronavirus outbreak on the global economy are still continuing. A record contraction forecast came from Switzerland, which was struggling with the outbreak. The government has predicted that the country's economy has been facing the worst recession of the past 45 years, and this year will shrink 6.2 percent. The State Secretariat for Economic Affairs (SECO) shared the forecast report for the country's economy due to the coronavirus outbreak. According to this report, the Swiss economy, which was negatively affected by the outbreak, is expected to shrink by 6.2 percent this year. SECO reported that the said decline would still be the sharpest decline in economic activity since 1975, although it was above 0.5 points from the institution's 6.7 percent contraction estimate published in April. The published report included predictions that the Swiss economy will grow by 4.9 percent in the next year. Unemployment will rise to 3.8 SECO thinks that unemployment will rise to 3.8 percent this year in the country as a result of the stagnation in foreign trade caused by the epidemic, the decline in household expenditures, and the measures taken to prevent the spread of the coronavirus epidemic. In the statements in the report, it was also stated that the recovery in the economy will depend on the spread of the epidemic, therefore the uncertainty in the estimates is extraordinarily high.