Switzerland’s GDP declined by 2.9% last year, the most severe drop after falling 6.7% in 1975, according to data released by the State for Economic Affairs (SECO).
In Q4 2020, Swiss economy grew by just 0.3%, after an increase of 7.6% in the previous three months.
The drop is a result of new Government restrictions to stop the spread of the pandemic.
Thus, Swiss economy is now expected to decline between 1.5% and 2% in the first quarter of 2021, after store closures and other restrictions affected consumer spending.
In December, SECO estimated that the economy would grow by 3% in 2021 and 3.1% in 2022. Switzerland’s GDP typically grows by about 1.7% per year.