No. 127, March

The KOF Business Situation Indicator for the Swiss Private Economy is still on the decline in February (see G 13). The indicator has fallen for the third month in a row and is thus being propelled along a downward trajectory. It is becoming harder for Swiss businesses to navigate through increasingly treacherous economic waters. 

Has the free movement of persons resulted in new jobs or has it simply shifted jobs from local residents to immigrants? Has it raised salaries among local residents or reduced them? These are the questions that were investigated in the context of an extensive research programme in which three KOF researchers played a leading role. 

What role does culture play in the founding of businesses? A new study has investigated this question with reference to Swiss linguistic regions. It shows that entrepreneurialism is in fact characterised by cultural differences. Specifically, Swiss nationals hailing from German-speaking areas are more likely to start a business than their French-speaking compatriots.  

Swiss exports reached a high water mark in 2018. Exports rose significantly for the most important categories of goods. However, the position becomes slightly more nuanced when considered more closely: during the second half of the year the dynamism fell back, above all in the machinery, electronics and metal industry.  

Important decisions on Brexit are due in mid-March. It is still unclear whether the United Kingdom will withdraw from the European Union in a regulated or unregulated manner - or whether the Brexit vote will be taken again. In the present state of things, Switzerland and the United Kingdom signed a bilateral trade agreement on 11th February which would regulate post-Brexit relations. This article shows the importance of the countries for each other and how they are linked to the rest of the EU.