And Norges Bank has been assigned a clear responsibility for ensuring price stability. We are well poised to tackle inflation while avoiding large costs in the form of high unemployment. The Storting has granted Norges Bank independence to set interest rates. With that independence comes substantial responsibility. The decisions we make have far-reaching consequences for a great many people. That is why it is important for us to be open about the basis for our assessments and the trade-offs we make. It is a sign of a healthy society that we engage in debate about different issues, including monetary policy. Transparency also involves acknowledging uncertainty. The past few years have reminded us that unexpected events can abruptly change the economic outlook. But there should never be any doubt that Norges Bank will do the job we have been given – to ensure low and stable inflation. Norges Bank  Economic perspectives 2023  12
On the other, the fiscal and monetary policy measures implemented could support the recovery more strongly than anticipated. Swiss economic outlook  Through to late summer, the Swiss economy also recovered markedly and more strongly than originally expected from the first wave of the pandemic. Following a record increase, GDP Page 2/4  Zurich, 17 December 2020 Thomas Jordan  News conference  was still 2% below the pre-crisis level in the third quarter, having been more than 8% below in the second quarter. However, in October coronavirus also spread rapidly again in Switzerland. This has resulted in a renewed deterioration in the economic outlook, at least in the short term. The containment measures implemented thus far are restricting economic activity less than was the case in the spring. However, certain industries are severely affected again, above all hospitality and entertainment. Sentiment is also subdued in other industries. Economic momentum is thus likely to be weak in Q4 2020 and Q1 2021. We expect that GDP will shrink by around 3% this year. At our monetary policy assessment in September, we had anticipated an even stronger decline. The revision is due to the fact that the decrease in GDP resulting from the first wave of the pandemic was not as substantial as originally expected. Developments going forward largely depend on how successfully the spread of the virus can be contained in Switzerland and abroad. Our assumption is that there will not be a significant easing in the containment measures in Switzerland until the spring.