Switzerland Infrastructure Q1 2021
Covid-19 is set to deal a sharp blow to Switzerland’s construction sector’s growth prospects during 2020 and 2021, witha prolonged period of inactivity and investor unease set to lead the sector to contract in the near term. We expect a contraction of3.6% during 2020, from a previous forecast for growth of 1.3%, with only a partial recuperation of 1.8% in 2021. Risks to 2021 lie tothe downside given the ongoing second wave of the virus and likely disruptions going into H121. Past the pandemic, we retain amoderate outlook for Switzerland's construction industry. As a mature, highly developed market, Switzerland's infrastructure sectoroffers fewer opportunities compared with smaller, emerging markets in the region, and we expect to see subdued growththroughout the current forecast period to 2029. The rail sub-sector is the primary target of infrastructure investment in the countryand boasts the most expansive project pipeline, encompassing both domestic and cross-border connections.