The economic situation in French-speaking Switzerland is slowly improving and remains in the red
As in the country as a whole, the economic upturn continues in French-speaking Switzerland. The CREA French-speaking indicator thus saw a slight improvement in July (+0.1 points) to stand at -0.2 points.
With the exception of Neuchâtel and Valais, the French-speaking cantons have seen their economic situation clearly improve since March and thus come closer to their long-term equilibrium. Geneva has seen the most favourable development. Its barometer has gained nearly 0.8 points over the last four months and now stands at 0.2 points. Vaud, the other behemoth of the French-speaking economy, is showing encouraging signs with an indicator that is close to the zero line at -0.1 points. Conversely, the Neuchâtel indicator stands at -1.0 points and remains on its downward trajectory, in particular due to a notable deterioration in conditions on the job market. The number of unemployed in the canton has increased by 44.8% in one year, almost double the national growth (+23.0%).
3,9%
The marked increase in industrial production in the second quarter of 2024
The nationwide economy is finally turning green
The CREA national indicator benefited from a strong rebound in July, going from -1.0 point to 0.2 point. The Swiss economy is now operating above its long-term equilibrium, a first in almost a year and a half. Key macroeconomic data continue to send mixed signals. While industrial production saw strong growth in the second quarter (+3.9%), the volume of exports has been declining for three months now. On the labor market side, the dynamic remains on a negative trend. The number of unemployed increased by 2.2% in July alone. As a sign of their reluctance to hire, companies announced 20,000 fewer vacancies in the previous quarter (-16.2%) than a year earlier.
Methodology
Published every month, the CREA economic indicator measures the current state of economic activity in Switzerland and the six French-speaking cantons. It is based on monthly (such as exports) and quarterly (such as GDP) data. Expressed in points, its average value is zero. Above/below, activity is higher/lower than average. The indicator allows the economic situation to be compared over different periods. For example, a value of -4 would indicate that economic conditions are less favourable in Switzerland than during the 2008-2009 financial crisis.
