In 2020-Q3, the spread of the virus slowed down and the restrictions to fight the COVID-19 pandemic crisis were progressively lifted. These factors triggered a strong rebound in GDP growth (+7.17%) in comparison to the second quarter of the year. The recover is visible in all GDP components, especially private consumption and investment expenditure. However, GDP (and all its components, except government spending) remains, not surprisingly, lower than in the same quarter of the previous year.

As in 2020-Q1 and 2020-Q2, the impact of the pandemic on the Swiss labour market has been limited. The unemployment rate stays constant at around 5%, hardly moving relative to the previous quarter and only about half a percentage point above the same quarter of the previous year. This suggests that targeted financial aid to firms through financed short-time work arrangements by the Swiss government has been effective so far. Prices are relatively stable with both current inflation and inflation expectations being low due to low oil prices, weak growth prospects and a strong Swiss franc. 

December 2020