16 Jun 2020
Posted in Banking
Switzerland’s retail savings and investment market to recover quickly from COVID-19 impact, says GlobalData
The Swiss retail savings and investments market will see a slight downturn in 2020, with retail equity and mutual fund holdings taking the brunt of the economy’s slowdown, according to GlobalData.
GlobalData forecasts double-digit growth declines for both retail equity and mutual fund holdings, of 17.2% and 11.1% respectively. However, retail equity holdings are expected to register growth of 14.7% in 2021, just a year after negative growth of -17.2%, which emphasizes the speed of the recovery.
The overall retail savings and investments market is only expected to contract by 3.5% over the course of 2020, though.
GlobalData’s senior wealth management analyst, Heike Van Den Hoevel, commented: “We expect the recession to be V-shaped, as a rapid recovery will be aided by the size of the country’s stimulus package With 9.5% of GDP allocated to one-off tax measures and public expenditure to aid the economy, it is one of Europe’s most generous packages. While measures taken to weather the crisis are expected to significantly drive up debt, they will also support a rapid recovery.”
This is reflected in GlobalData’s forecasts, as it expects an instant rebound from the industry with growth of 7.8% for retail savings and investments in 2021. The analytics company expects significant losses in risk assets in 2020 due to the ongoing loss of activity across all industries. One area to benefit in the short-term will be retail deposits, which we forecast to grow by 4.4% in 2020, up from 2.4% previously.
Information based on GlobalData’s report: Covid-19 Sector Impact: Retail Savings & Investments – Switzerland