Nr. 176, September

The KOF Business Situation Indicator for the Swiss private sector pauses in August (see Chart G 5). After a sharp decline in the previous month, it does not fall further. Expectations for further business development remain rather subdued. The Swiss economy is developing sluggishly.

In many countries, support for xenophobic views varies considerably from region to region. It is often strongest in areas without a large proportion of foreigners. A new study shows that a lack of local experience with immigration is partly responsible for this. Regions that have had more experience with immigration and integration in the past exhibit a much weaker nationalist backlash against new waves of immigration.

Restricting employment opportunities for refugees reduces their likelihood of working and earning in the long term. This imposes high costs on refugees and host societies.

KOF economist Andreas Beerli explains in an interview why immigration is desirable from an economic point of view and in which areas Switzerland still needs to improve.