What makes Switzerland's economy resilient in face of COVID pandemic
The COVID-19 pandemic has hit economies worldwide – and we have not yet overcome it. However, Switzerland is among the economies that will best weather the crisis and recover, according to a report from Horizon Group.
While there is no forecasting in how badly the crisis will play out in the future, there are factors that help countries in handling the effects. The Horizon Group conducted a report in which it explores the capacity of countries to recover and rebuild post-COVID. According to this report, the economy of Switzerland is well prepared to master the crisis.
Not surprisingly, Switzerland’s economy is within the top ranks when it comes to resilience. Ranked among the top 5 countries, Switzerland has all the factors that give a country strength in times of a crisis:
- Workforce adaptability
- highly digitalized economies
- strong governance
- social capital
- well-functioning financial systems.
Switzerland benefits from highest level of economic resilience
According to the authors, the economy in Switzerland benefits from the highest level of economic resilience worldwide, thanks to a solid mix of digitalization, education, skills, governance and social capital as well as its labour market agility. The latter ensures that employees can work from home and further enables workers to upgrade their skills and to change into different jobs. This factor goes hand in hand with the digitalization. Switzerlands strong digital skillset, the high education level of its inhabitants and the accessibility of the digital infrastructure are features that are not to be dismissed when it comes to the recovery after a crisis.
Switzerland is – correctly – considered a wealthy country with a high GDP, a low debt level and a stable financial system. However, trust in the institutions is equally important. Altogether this lead to quick and effective financial help for struggling businesses.
With its resilience, Switzerland remains one of the best adapted countries to weather the pandemic and its effects. Thus, it holds promise for companies who want to build on a solid foundation.