Information unaudited Information ungeprüftEconomic environment

International perspectives

The global economy returned to a stable growth path in 2024 after the turmoil of the pandemic. Contrary to historical experience, the restrictive monetary policy did not stifle the humming US economic engine and the US economy was one of the best of the major industrialised countries with robust growth rates.

Euro zone

In the eurozone, on the other hand, there was no economic success in 2024. Economic growth was moderate and only slightly above stagnation. Germany, which is still struggling with the consequences of the 2022 energy shock, was under particular pressure. The German economy was barely growing - industry is in crisis.

Asia

In China, the property crisis was dampening economic growth. Households and companies were holding back on consumption and investment. Indiaʼs economy has lost some of its momentum, but is still impressing with its rate of expansion.

Monetary policy

Inflation has eased further in 2024, although the pace has slowed considerably compared to the previous year. Switzerland was able to maintain its price stability and is battling against inflation rates that are too low. In the other industrialised countries, on the other hand, inflation rates were generally too high, but the inflation target is within sight.

For this reason, the central banks were able to ease monetary policy. Although the central bank in Japan has raised interest rates, central banks in all other major industrialised and emerging countries have lowered them. In Switzerland, there were even more interest rate cuts than in the USA or the eurozone.

Financial markets

As a result, the return on Swiss bonds in 2024 was higher than that of foreign markets. Thanks to falling risk premiums, corporate bonds generated a higher return than government bonds.

2024 was an excellent year for equities. With a return of 7 per cent, the Swiss market was a laggard, while the US market was driven by a euphoric technology sector and set the tone with 25 per cent.

Gold can also look back on an outstanding year with a performance of 25 per cent.