July

The KOF Economic Barometer rises strongly in July for the second month in a row. This is the strongest monthly upward movement that the barometer has ever shown. However, the downward move in April was even more pronounced. The economic prospects for the Swiss economy therefore remain subdued.

The KOF MPC figure for 16 July 2020 is -0.38. At today’s meeting, the ECB has reconfirmed its very accommodative monetary policy stance to safeguard medium-term price stability.

The Coincident and Leading Global Economic Barometers have risen for the second consecutive month in July, indicating a gradual recovery of the world economy. Although the numbers have begun moving away from the trough of the crisis, further developments remain uncertain, both on the economic and the health front.

Economic output in the euro area suffered a sharp plunge in the second quarter, which is now being followed by a slower recovery. This is the expectation of the ifo Institute in Munich and KOF in Zurich in their Eurozone Economic Outlook (EZEO). The overall forecast is uncertain because nobody knows how the coronavirus pandemic will continue, how companies’ liquidity situations will develop, and how consumers will behave.