As national restrictions to fight the COVID-19 pandemic crisis were progressively lifted in the first half of the year, Switzerland has been experiencing positive economic growth throughout 2021. In 2021-Q3, GDP grew by 1.67 percent relative to 2021-Q2 and by 3.25 percent relative to 2020- Q3. The SECO-based unemployment rate steadily declined to 2.70 percent, a value that is half a percentage point lower compared to the same period of the previous year. Prices are relatively stable with both current inflation and inflation expectations being low due to increasing strength of the Swiss franc. According to the OECD economic outlook, GDP is expected to continuously grow and to stabilize at an annual growth rate of about 3.0-3.5 percent from 2022, unemployment will gradually decline, and inflation will stabilize at around 0.5 percent. These predictions are based on the expectation that economic activity will gradually transit towards normalcy.

January 2022