Swiss government expects economy to shrink 6.7% in 2020

In its updated forecasts, the Swiss government said that it expects the GDP to contract by 6.7%, worst slump since 1975, in 2020 due to the coronavirus impact, as reported by Reuters. The government expects the economy to recover slowly in 2021 with an annual growth of 5.2%.

Meanwhile, the unemployment rate is expected to be 3.9% in 2020 before rising to 4.1% in 2021. Finally, inflation is seen dropping to 1% and 0.5% in 2020 and in 2021, respectively.

Market reaction

The USD/CHF pair largely ignored these figures and was last seen up 0.5% on the day at 0.9760.