No. 110, September

In August 2017, the KOF Business Situation Indicator for the Swiss private economy rose again after a slight decline in the previous month (see G 5). The improved European economy was the main additional driver of economic growth in Switzerland.

In many countries, the youth labour market deteriorated substantially after the financial crisis. Political interest in vocational education and training programmes as a means to improve this situation increased significantly. However, as yet little is known about the impact of vocational education and training on the youth labour market. The authors of a new KOF study aim to close this gap.

The global economy has been growing substantially for over a year now. The tempo even accelerated in the second quarter of 2017. Growth rates in the USA, Japan and the Eurozone significantly exceeded the potential. In the USA, the economy is close to full capacity, in Japan already above. In contrast, the production gap has not yet closed in the Eurozone. The Chinese economy is slowly passing the peak of its boom.

Both in Switzerland and abroad, the Swiss ‘debt brake’ is often seen as one of the country’s big success stories. Since its entry into force in 2003, the government’s gross debt has declined from 124 billion Swiss francs to 99 billion Swiss francs (2016), despite the financial crisis and the Swiss franc shock (see G 1). Nevertheless, some politicians are worried.