At the beginning of the Covid-19 pandemic, the Swiss economy was moving from an economic low into a gentle upswing phase with low unemployment and healthy public finances by international standards. Due to its geographic location, Switzerland and in particular its Italian- and French-speaking regions were affected early and severely by SARS-CoV-2 infections. During the (gentle) lockdown period, the preservation of structures had top priority. Jobs were maintained by short-time work and the liquidity of enterprises was upheld by easy and quick access to cheap and state-guaranteed credit. In contrast, little was done to prevent over-indebtedness of the economy and for firms to form expectations relevant for innovation and investment decisions. Companies received no significant support for bearing their cost of capital. The communication of government often lacked forward guidance.