Back in black: Swiss GDP bounces back to exceed pre-pandemic levels
After the tumultuous year that was 2020, new data from the Federal Statistical Office (FSO) has revealed that the Swiss economy grew significantly in 2021. Gross domestic product (GDP) rose by 4,2 percent, as a result of higher consumer spending and exports, and greater investment by banks, insurance providers and international companies.
Gross domestic product in Switzerland increases significantly
After falling by 2,4 percent in 2020, mainly because of the pandemic, the FSO found that Swiss GDP grew by 4,2 percent in 2021, with gross national income (GNI) increasing by 5,4 percent. GDP measures the value of goods and services produced in a nation, while GNI measures the total amount of money earnt by workers and companies.
GDP in Switzerland has now eclipsed levels seen before the pandemic. Economic growth was spurred by a 1,6 percent increase in consumer spending in 2021. According to the FSO, spending on food, non-alcoholic beverages, furniture, clothing and healthcare were the main drivers behind the increase.
Exports, investments and spending rose in Switzerland in 2021
Recovering from a 3,1 percent decline in 2020, investments increased by 4,2 percent in 2021, 20 minuten reported, with the highest spending being investments in construction and equipment. Exports also boomed, with goods sales abroad increasing by 11,5 percent. Switzerland’s trade surplus also increased by 29 percent.
Despite the growth, not all was sunshine and roses, with 20 minuten noting that while other industries flourished, COVID restrictions kept the lid on economic growth within the leisure, tourism and culinary sectors. However, with all COVID restrictions phased out, it is likely that the sector will grow significantly when data is released for 2022.