Switzerland is projected to see solid growth in employment in 2020, according to an economic forecast by the Swiss Federal Government’s Expert Group released by the State Secretariat for Economic Affairs.

It expects the unemployment rate to be 2.4% during 2020, down from a forecast of 2.5% made in September. It reported unemployment has developed somewhat more favourably than could have been assumed.

The report forecast GDP growth of 1.7% in 2020 and 1.2% in 2021 — this follows the forecast growth of 0.9% in 2019. Still, the increases in 2020 and 2021 are due to major sporting events and the underlying momentum of the economy will remain similar to this year in 2020, increasing somewhat in 2021.

“The international environment remains unfavourable,” according to the report. “In particular, the weak growth can be expected to continue in the eurozone as well as in Germany, the single most important trading partner.”

However, while 2021 is set to brighten gradually, the economic slowdown of the two previous years is expected to have a delayed impact on the labour market with the unemployment rate expected to rise to 2.6% in 2021.