ICYMI – Switzerland has slashed economic growth forecasts

Both the Swiss government and the private KOF Swiss Economic Institute expect slower growth for the economy.

• Switzerland’s State Secretariat for Economic Affairs (SECO) Economic Growth Forecasts:

  • 2023: Swiss economy projected to grow 0.9% (down from a prior forecast of 1.2%).
  • 2024: Growth forecast revised to 1.5% (previously 1.6%).
  • 2026: First forecast predicts 1.7% growth.
  • All forecasts are below Switzerland’s long-term average growth of 1.8%.

• Factors Impacting Growth:

  • Slower global demand, particularly from Germany and China, is weighing on exports.
  • Domestic demand expected to drive growth in 2024.

• Risks Ahead:

  • US trade policy, including tariffs under the incoming Trump administration, adds uncertainty.
  • Broader international economic and trade policy remains unpredictable.

• KOF Swiss Economic Institute Forecast:

  • Expects growth of 1.4% in 2025 and 1.7% in 2026.
  • Predicts weak foreign demand until mid-2025, with gradual improvement thereafter.

This article was written by Eamonn Sheridan at www.forexlive.com.