The Swiss economy is in top form. Growth figures leading to trend reversal in bond markets. The SNB is still not afraid of inflation. Significant correction underway in equity markets.
Key Points
Swiss GDP grows +1.8% in Q2 2021 and 7.7% year-on-year
Strong comeback of domestic demand
Leading indicators support a solid growth outlook
Manufacturing sector is doing well and diversifying its supply chain
Inflationary risks rising in Switzerland too
The SNB is not worried about inflation and is staying the course towards a weakening of the Swiss franc
The bond bubble is close to bursting
Biggest decline in Swiss equities since October 2020