2017 will be a year of uncertainty for the Swiss economy, yet a modest growth of 1.6% will help the economy to progress further. The country’s modest growth is caused by a restrainted private consumption and a lack of growth in the export industries. Some workplaces will also be added to the country’s employment, yet a quite modest number as well, with an employment rate being stuck at 3.3%.
The global environment does not promise good signs for the Swiss economy, the growth of its exports, and bringing some certainty. On the contrary, Brexit, international conflicts, and the election of Donald Trump as a president of the United States causes more concerns about the global trade in 2017. Whereas Donald Trump promised to impose more protectionist measures on the trade partners of USA (such as Mexico and China), the Great Britain strives to remain in the free-trade zone with the EU while exiting the common labor market.
Despite the fact that the modest recovery has been picking up the pace in Switzerland since the beginning of 2016, the trend of a zero inflation (and even deflation) remained until the end of 2016, whereas the prices continued to fall on the background of low oil prices and the strengthening franc. This harms the Swiss economy and the rate of employment in the country, because Swiss companies have to boost productivity or, otherwise, resort to layoffs. The purchasing power of residents grew mostly not thanks to the rising wages (the rise of wages has been low), yet due to the low level of oil prices, which allowed both the citizens and companies to allocate their funds for other purposes.
Yet, the prices on raw materials and, in the first place, energy resources grew in the last months of 2016, which means that the phase of deflation is going to end in the nearest future. It is expected, however, that the Swiss National Bank will stick to its loose monetary policy in an attempt to boost inflation.
Drug producers are among the Swiss leaders in terms of growth
Whereas the further contractions in the manufacturing sector and the structural changes in the Swiss economy are expected, we would highly recommend to all jobseekers in Switzerland to look for workplaces in the sector of services. Such a suggestion is cased by the single fact that the strong currency and inability to boost productivity will cause the manufacturing sector to continue its layoffs, which will cause the decline of growth in this industry. KOF, or the KOF Swiss Economic Institute, predicts that the growth of exports of services will be as high as 2.2% and 3% in 2017 and 2018, accordingly. In the meantime, the exports of manufacturing will probably remain flat.
The KOF Institute also predicts a slower rate of immigration, mostly in the industries of manufacturing and banking. High-qualified personnel are still required in the industries like health care, pharmaceutics, IT and technology, education, etc. The strong franc might, however, be another reason for immigrants to seek jobs in Switzerland.