'Double Dip' Recession Feared In Switzerland

by Ulrika Lomas, Tax-News.com, Brussels

12 November 2002

Switzerland could be facing a 'double dip' recession, according to experts.

Reporting following the release of new economic data which revealed that unemployment in Switzerland hit 3% in October, whilst Swiss household debt has reached record levels, the Swissinfo news service recorded that 'a pall' has been cast over the country's economic outlook.

Speaking to the news service on Monday, Jean-Christian Lambelet, Professor of Economics at Lausanne University announced that: 'I personally think there is a real danger [of a double dip recession], not only because of what's happening in Switzerland, but what's happening elsewhere.'

He added that declining consumer spending 'spelt trouble' for the already fragile economy, and warned that: 'Real investment - in equipment and construction - has come crashing down rather more than everyone thought.'

According to the quarterly consumer confidence index, issued on Thursday by the State Secretariat for Economic Affairs (Seco), public confidence has fallen to its lowest level for nearly ten years. Swissinfo reported that:

'Consumers main concerns are job security and fears that the economy has deteriorated. The Swiss also said their financial situation had deteriorated in October.'

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