Economic situation

Development of economic output

Real and nominal GDP rates of change (in %, adjusted for sporting events)

2017–2022: State Secretariat for Economic Affairs (SECO)
2023:             Estimates of economic forecasts expert group of June 15, 2022
2024–2026: Forecasts according to the dispatch on the 2023 budget with integrated task and financial plan for 2024 to 2026 of August 17, 2022

The economy expanded by 2.1 % in real terms in 2022, meaning that its growth was weaker than the 3.3 % assumed in the 2022 budget. Economic growth was underpinned primarily by the domestic economy. Despite rising inflation, the development of consumer spending remained solid, not least thanks to the supportive labor market. Investments decreased overall and the deterioration of the international environment and the associated decline in foreign demand also curbed their growth.

Compared with the previous year, inflation rose to 2.8 % (budget: 0.5 %). The war in Ukraine and supply chain bottlenecks caused energy and commodity prices to skyrocket. Moreover, inflation spread, as the prices of other goods were also raised. Although inflation had not been as high in Switzerland since the 1990s, it remained moderate by international standards. This was partly due to the economy being less energy-intensive and the nominal appreciation of the Swiss franc. Due to high inflation, nominal economic growth amounted to 5.4%, which was stronger than expected in the budget (3.8 %).

Central banks responded to the rise in inflation rates. Aside from the US Federal Reserve and the European Central Bank, the Swiss National Bank also raised interest rates. It did so in three steps, taking the SNB policy rate from -0.75 % to +1.0 % by year-end.

As the economy recovered and unemployment fell, the labor market was increasingly impacted by tight labor supply. Employment increased moderately and the unemployment rate fell to 2.2 % (2021: 3.0 %), its lowest level in over 20 years.



Last modification 01.05.2023

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