Switzerland economic growth to be hit by referendum

A survey carried out earlier in the week has revealed that leading economists believe that Switzerland’s growth will be severaly hit by plans to limit immigration quotas.

Bloomberg’s monthly economics survey today stated that 16 of its 21 responses from leaders in the field said the country’s economy would be hard hit by the changes, whilst just five believed they would have no effect. The issue is becoming a mainstream concern with many in the financial sector as well as would-be immigrants.

One senior economist at IHS Global Insight said that limiting immigration clearly has a negative impact on growth, as firms invariably cut back on investment when uncertainty about hiring the necessary expat professionals is an issue. The cap on immigration forced by the referendum will come into force over the next three years.

Manuel Andersch, senior analyst at Munich’s Bayer-ische Landesbank, noted that the full effects will only be clear once the exact rules for immigration are published by the Swiss Government. He added that, the stricter the imposed quota for highly skilled workers, the more negative economic effects will be felt.

Switzerland already places upper limitations on the number of immigrants from non-EU member states, including Australia and Canada. At the present time, there is no information or speculation as to the level of quotas to be imposed on EU citizens, although the government has promised a ‘road map’ by June and the introduction of a bill into parliament by the end of 2014.