EFFECTS OF THE CORONA CRISIS IN LIECHTENSTEIN AND … · • The Liechtenstein and Swiss economies...
15
EFFECTS OF THE CORONA CRISIS IN LIECHTENSTEIN AND SWITZERLAND Lecture by Andreas INSAM, CEO BENDURA BANK AG – General Assembly of HST, 27th May 2020
Transcript of EFFECTS OF THE CORONA CRISIS IN LIECHTENSTEIN AND … · • The Liechtenstein and Swiss economies...
EFFECTS OF THE CORONA CRISIS
IN LIECHTENSTEIN AND SWITZERLAND
Lecture by Andreas INSAM, CEO BENDURA BANK AG – General Assembly of HST, 27th May 2020
27th May 2020 | BENDURA BANK AG | Page 2
MY UNCLE`S HOME VILLAGE
(FRAXERN, VORARLBERG) – FIRE IN 1934
27th May 2020 | BENDURA BANK AG | Page 3
GERMANY: HYPER-INFLATION FROM JULY TO OCTOBER IN 1923
27th May 2020 | BENDURA BANK AG | Page 4
TOTAL ASSETS OF KEY CENTRAL BANKS
JANUARY 2007 – APRIL 2020
27th May 2020 | BENDURA BANK AG | Page 5
TOTAL ASSETS OF KEY CENTRAL BANKS
JANUARY 2017 – APRIL 2020
27th May 2020 | BENDURA BANK AG | Page 6
GDP GROWTH RATE
FL / CH / AT / DE
27th May 2020 | BENDURA BANK AG | Page 7
GOVERNMENT EFFORT TO FIGHT CORONA IN RELATION
TO STATE BORROWING (IN PERCENTAGE OF GDP)
0
20
40
60
80
100
120
140
Germany Italy France United States Great Britain Switzerland
22
14 128 6 5
60
135
99
109
85
39
Government Efforts to fight Corona (in % of GDP) State Borrowing (in % of GDP)
27th May 2020 | BENDURA BANK AG | Page 8
Economy and Finance Unit 2005 2010 2015 2018 2019 2020(e)
GDP Growth y-t-y 3,2 2,9 1,3 2,7 0,9 - 4,0
GDP per Inhabitant (ongoing
Prices)USD 55.114 74.885 82.551 83.162 83.717
Exchange rate (annual Average) CHF / EUR 1,55 1,38 1,07 1,15 1,11
Government Debt % of GDP 56,1 42,6 43,0 40,5 38,6
Currency and Gold Reserves Billion USD 57,6 270,5 602,4 787,0 854,9
KEY MACROECONOMIC DATA
SWITZERLAND
27th May 2020 | BENDURA BANK AG | Page 9
LIECHTENSTEIN SHOWS SIGNIFICANT BUDGET SURPLUSES
-7228 5 11
61100
132 1187
160
-8
228
5
6539
92
170
53
328
-100
0
100
200
300
400
2014 2015 2016 2017 2018 2019
CH
F M
io.
Betriebsergebnis Finanzergebnis a.o. Ergebnis Ergebnis EROperation Income Yealed on Savings e.o. Income Net Income
27th May 2020 | BENDURA BANK AG | Page 10
LIECHTENSTEIN HAS NO GOVERNMENT DEBTS
BUT SUBSTANTIAL RESERVES
Government Reserves in CHF Million 2019 2018
Market Value 01.01.2019 1´808 1´766
Dividends / Coupons 17 18
P&L 177 -93
Commissions Paid -3 -3
Capital Contributions 115 120
Market Value 31.12.2019 2´114 1´808
27th May 2020 | BENDURA BANK AG | Page 11
CENTRAL EUROPE
CORONA IN FIGURES
People died Infected minus recovered People Recovered People
27th May 2020 | BENDURA BANK AG | Page 12
• The simultaneous occurrence of shocks on the demand and supply sides is a
characteristic of the COVID-19 pandemic.
• In Liechtenstein and Switzerland, the economic impact will be driven not by domestic
demand but by international demand for goods.
KEY STATEMENTS (1/3)
27th May 2020 | BENDURA BANK AG | Page 13
• The negative effects on the supply side will probably be less pronounced than those on
the demand side, but some risks do exist.
• Unlike in the financial crisis, the financial sector is not the trigger of the economic
shock, but trends in the real economy mean that COVID-19 will still affect it indirectly.
KEY STATEMENTS (2/3)
27th May 2020 | BENDURA BANK AG | Page 14
• The Liechtenstein and Swiss economies will be heavily affected, but they are also well
equipped to deal with these challenges.
• How profound the pandemic’s impact on the two economies will be will depend on its
future course.
KEY STATEMENTS (3/3)
27th May 2020 | BENDURA BANK AG | Page 15
Contact details
BENDURA BANK AG
Schaaner Strasse 27
9487 Gamprin-Bendern
Principality of Liechtenstein
P: +423 265 56 56
www.bendura.li
