No. 138, March

The KOF Business Situation improved further in February, albeit only marginally. As a result, the easing of tensions that was already apparent in January has been confirmed. The Coronavirus epidemic has not yet, for the time being, had much of an impact on the Swiss economy. However, recent developments - in particular in Italy and Ticino - are not covered by the survey results. Aside from this, the basic economic trend is fairly positive at the moment.

In Serbia, a new law on dual vocational education and training has been launched which provides better protection and more rights for students in the workplace. A survey shows that this law has a major impact on the everyday school and work life of young people.

The weak global economic climate coupled with the low propensity to invest abroad held back the Swiss export economy last year. Following also the rapid outbreak of the Coronavirus at the start of the year, this caused major uncertainty for exporters.

Global economic dynamism was relatively weak also last year. Economic policy uncertainties, dwindling world trade and weak demand for investment goods left a major mark in particular on Europe and East Asia. This article looks back over 2019 and examines Switzerland’s economic environment.

A new study shows that globalisation has diminished the income share of the middle class. Even the poorer parts of the population saw their income shares decline, while the shares of high incomes has risen. This effect is driven by developments in transition and developing countries.

According to the results of the semi-annual KOF Investment Survey, investment activities in Switzerland are set to slow down further this year. The uncertain international environment has put a brake on expenditure growth. Nevertheless, investment in environmental protection and compliance with commercial law requirements has clearly acquired greater importance.