Switzerland: Contraction set to be deeper than expected – Standard Chartered

Economists at Standard Chartered Bank lower the 2020 Swiss GDP forecast to -5.6% (previously -2.5%). USD/CHF trades at 0.9768.

Key quotes

“We revise down our 2020 growth forecast to -5.6%, from -2.5% previously. A recovery in activity in H2-2020 should underpin 2021; we now expect GDP growth of 4.5% in 2021 (previously 0.8%).”

“We revise our 2020 fiscal deficit forecast to 8.0% of GDP (from 5.0% previously) and see the deficit moderating to 5.0% in 2021 (2.5% previously).”