The Swiss economy could contract by as a lot 10.4% this year due to the influence of the brand new Corona Virus, the Swiss authorities mentioned Wednesday.
The downgrade from the federal government’s earlier forecast of a 1.5% contraction would happen if there was a chronic shutdown in Switzerland and overseas, triggering bankruptcies and job cuts. In this L-shaped state of affairs, there would solely be a weak restoration with the economy forecast to develop by 3.4% in 2021.
In a second v-shaped state of affairs, the Swiss authorities reckoned with a contraction of seven.1% earlier than a stronger bounceback come 2021.
Switzerland’s authorities prolonged the nation’s anti-Corona Virus restrictions for an additional week to April 26, however mentioned a gradual loosening of measures that now embrace border controls, faculty closures and bans on gatherings would start this month.
“For the profitable phaseout of the measures, sure necessities should be fulfilled,” the federal government mentioned in an announcement Wednesday, including standards it was contemplating in introducing the easing included the variety of new infections, hospitalizations and the dying charge.
The authorities assertion mentioned the financial measures relating to the virus place emphasis on federal ensures for airways, one of the crucial damage sectors by the virus.
It mentioned ensures for airways can be accompanied by strict circumstances and would solely be given in the event that they couldn’t cowl liquidity wants in one other means.
The authorities assertion mentioned public assist for airways is taken into account solely secondary, “and airways and their house owners should deploy all acceptable measures to safe liquidity on their very own.”