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Retail Savings & Investments in Switzerland: Coronavirus (COVID-19) Sector Impact
The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.
The ongoing pandemic has severely affected Switzerland's export-oriented economy, resulting in a slowdown in exports, a fall in tourism, and a decline in the domestic consumption of goods and services. The country's GDP has been revised downward for 2020 due to the economic disruption caused by Coronavirus.
This report focuses on the impact of the coronavirus outbreak on the Swiss economy and the country's retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData's pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.
- Switzerland's retail savings and investments are forecast to contract by 3.5% over the course of 2020 as economic productivity has dived thanks to the impacts of COVID-19. Retail equity and mutual fund holdings are expected to take the brunt of the economy's slowdown, with respective declines of 17.2% and 11.2% anticipated.
- Retail deposits and bond holdings are set to fare better than initially expected courtesy of a flight to safety away from risk assets. But more pronounced declines in risk asset holdings mean GlobalData's total retail holdings forecast for 2020 is 4.9 percentage points (pp) lower than before the onset of COVID-19.
- HNW wealth is forecast to contract by 2.5% during 2020. However, we expect the sectors with the largest contributions to HNW wealth (financial services and healthcare) to hold up more robustly than others, aiding a rapid recovery. As a result, HNW wealth growth is forecast to bounce back to 10.6% in 2021.
- Also working in Switzerland's favor is the low contribution to HNW wealth of industries expected to be strongly hit by COVID-19, such as retail fashion and luxury goods and hotels, restaurants, and leisure.
Reasons to Buy
- Make strategic decisions using top-level revised forecast data on the Swiss retail savings and investments industry.
- Understand the key market trends, challenges, and opportunities in the Swiss retail savings and investments industry.
- Receive a comprehensive insight into the retail liquid asset holdings in Switzerland, including deposits, mutual funds, equities, and bonds.