Eastern Switzerland’s economy shows positive dynamics
St.Gallen – Labour productivity has increased faster in Eastern Switzerland since 2008 than in any other major region in the country. These are the findings of a new study. Eastern Switzerland’s strong position in high-tech industry has paid off.
Top Federal Council representatives will meet on Thursday to celebrate the opening of Olma in St.Gallen, where the findings of a new study conducted by Lucerne University will be presented.
The study examined the economy, public finance and the positioning of cantons in Eastern Switzerland on a national financial level.
Among its conclusions is that Eastern Switzerland’s labour productivity increased greater than in any other Swiss region in recent years. Between 2008 and 2014, productivity grew by almost six per cent – more than twice as much as across Switzerland as a whole.
This growth can partly be attributed to the region’s unique economic structure: with agriculture, traditional industry and high-tech industry, sectors facing increasing pressure to adapt are over-represented.
Digitalization is a great opportunity for these sectors, announced St.Gallen finance head Benedikt Würth upon the unveiling of the study. “We anticipate the shift of industrial production processes to countries with a cheaper workforce to slow down or even go into reverse,” he explained in a statement.
Companies can exploit these opportunities beyond the region, he added. It is obvious that “the network of locations at the disposal of our high-tech companies has become wider and more varied and international in a very short space of time,” he said.
These are factors Würth attributes to the region’s strengths: it offers low living costs and attractive living space comparatively in Switzerland. “We may conclude that Eastern Switzerland is catching up,” he asserted, adding that the region must collectively broach topics of the future.
Köbi Frei, head of finance for Appenzell-Ausserrhoden and president of the Eastern Switzerland Financial Directors’ Conference, pointed out in a statement that the cantons in eastern Switzerland are among the poorest in terms of resources, while partly also bearing a “high structural load”.
A restrained fiscal policy and a responsible handling of funds from the national financial adjustment are of great importance, he added.