YEREVAN, February 20. /ARKA/. Switzerland’s decision to limit immigration will hurt economic growth, according to economists who cover the country.
Restrictions on foreigners approved by Swiss voters earlier this month will hurt growth prospects, according to 16 of 21 responses in Bloomberg’s monthly survey of economists. Five said the limits will have a negligible effect and none said the curbs would have a positive impact.
Immigration limits are “clearly negative for growth,” said Timo Klein, senior economist at IHS Global Insight Inc. in New York. “The largest effect is not so much from any quotas themselves but from the direct investment not taking place due to firms fearing the uncertainty about not getting the personnel they need in the future to make such investments profitable.”
The Swiss government will have to set a cap for foreigners within the next three years after 50.3 percent of voters embraced an initiative by the euro-skeptic Swiss People’s Party SVP against mass immigration.
A quota system for foreigners, which companies including Nestle SA have warned may undermine business, would contravene an agreement with the European Union allowing its citizens to take up jobs freely and jeopardize other accords as well. –0--