Swiss govt nudges economic growth forecast upwards
The Swiss economy will grow 1.2% this year, the government said in its latest forecast yesterday, amid persisting weak industrial demand that has been hurting the export-oriented country.
It is a small increase from the 1.1% forecast by the State Secretariat for Economic Affairs (Seco) in March, but still below the country’s long-term average growth rate of 1.8%.
Growth in services and private consumption will be held back by a weak industrial sector, Seco said, and a subdued recovery in Switzerland’s biggest export market, the eurozone.
“Numerous indicators currently point to moderate growth for the Swiss economy in the near future.
“Overall, global demand from the Swiss perspective is expected to remain below its historical average in the coming quarters,” Seco said, although the recent weakening of the Swiss franc could help exporters.
Seco said it expects a pick-up in economic activity next year, with growth of 1.7%, the same level given in its March outlook.
All the forecasts were adjusted for sporting event revenues generated by sporting bodies based in Switzerland such as the International Olympic Committee and UEFA.
For 2024, Seco expects Swiss inflation to remain low, cutting its outlook for consumer prices to rise to 1.4% from 1.5% previously.
In 2025, it expects prices to rise 1.1%, the same level it forecast in March.
The government’s forecasts were slightly more optimistic than the recent outlook from business group Economiesuisse, which earlier this month said it expected gross domestic product expansion of 1.1% this year and 1.4% in 2025.
The Swiss National Bank is also due to give its latest economic outlook on Thursday when it announces its interest rates decision. – Reuters