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An economic upturn thanks to a dynamic Eurozone and a strong Euro

In the current year 2017 we can expect a cyclical upturn of the Swiss economy - even though the economy didn’t grow quite as much as initially expected.

This promises a dynamic world economy. In particular the Eurozone has been on an upswing in the first quarter. Germany’s and Spain’s positive economic trend has also had an affect on the Euro. The Euro has gained ground to the Swiss franc and was close to 1.15 CHF recently. The Swiss economy will most likely see a benefit of this current trend in the Eurozone.

The Canton of Basel-Stadt’s overall economic performance will also experience accelerated growth. BAK Basel Economic forecasts that the gross domestic product (GDP) will increase 2.8%  for the year 2017 (2016: 2.2%). This means that the economy in the Canton of Basel-Stadt will grow above average compared with the overall economic performance in Switzerland (Switzerland: 1.4%). Mainly responsible for this development are again the life sciences, which were able to increase its gross value creation by 4.5% in 2017 according to BAK Basel Economics. But also tourism, even though on a smaller scale, contributed to this positive trend in Basel. In the first seven months this year a total of 749‘000 overnight stays were booked in Basel, which is 7.8% more than during the same time period in 2016. This increase is mostly due to more international guests visiting Basel. In light of a positive global economic outlook this trend is most likely expected to continue.

The continuing positive economic trend is also reflected in the job market. Employment rate will increase 0.9% in 2017 in the Canton of Basel-Stadt according to some forecasts. The Cantonal panel of experts expects that the unemployment rate will remain stable at 3.7% in the Canton of Basel-Stadt.

Sources:

Source for the Swiss economic forecast is „SECO Konjunkturtendenzen Sommer 2017“, for the cantonal forecast „BAK Basel Economics (Stand 14.07.2017)“ and for the tourism statistics „Statistisches Amt des Kantons Basel-Stadt Statistische Mitteilung vom 15. August 2017“.

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