Swiss economic growth is expected to slow down in 2019, as external demand from the Eurozone and the US has weakened and investment growth decreases.
Corporate insolvencies expected increase again in 2019
Since 2015 Swiss business insolvencies have recorded annual increases due to a more difficult economic environment. In 2019, another 5% rise in business failures, to about 7,220 cases, is forecast.
Growth expected to decrease in 2019
After robust economic performance in 2018 with buoyant manufacturing exports, Swiss GDP growth is expected to decrease to about 1% in 2019. The slowdown is mainly due to weaker external demand (especially from the Eurozone and the US) and lower investment growth (due to a less buoyant business sentiment).
Negative interest rates (the Central Bank has kept the benchmark interest rate at -0.75% since 2015) have helped to contain currency appreciation and have supported private consumption, which is expected to grow at a higher level in 2019 than in 2018. Inflation is expected to remain below 1% in 2018.
Negotiations with the EU in order to establish a new institutional framework agreement are currently ongoing. A failure to conclude such an agreement would most probably hamper the economic exchange with the EU.