Economy feels inflation and strong franc
More recently, the events that crippled the Swiss economy have come a long way. First the Corona pandemic, then the Ukraine war and a few weeks ago the Swiss National Bank (SNB) raised the key interest rate. Its consequences include euro parity and inflation.
strong franc
Above all, the stronger Swiss franc has an impact: “From an economic point of view, this means that Switzerland can buy abroad more cheaply and it may be cheaper for Swiss companies to acquire the company,” explains John Hafelinger, CEO of Baselandschaftlich Cantonalbank. Huh. , On the other hand, it also means that Switzerland makes more expensive exports, which puts a certain amount of pressure on companies, according to Heffelinger.
inflation puts pressure on
Inflationary pressures are felt not only by companies, but also by private individuals. There are many reasons for inflation. “The raw material components and energy prices are clearly noticeable, everyone notices that along with their ancillary costs,” says the CEO. In addition, one will notice an imbalance between supply and demand, as there will be significant delays in deliveries – caused by the corona pandemic – explains John Heffelinger. There is an imbalance in the labor market as well, where a shortage of skilled workers is causing problems for some sectors. According to Häfelfinger, the increase in interest rates is also worth noting.
“It takes a position like this”
But there would be no cause for concern. “Such conditions tend to correct the market,” says the CEO. BLKB CEO John Heffelinger explains that because every risk has a return and the higher the risk, the higher the return and vice versa.
