Swiss government forecasts weak growth but lower inflation in 2024 (updated)
19/03/2024 09:42
(Adds details, comment)
ZURICH, March 19 (Reuters) - The Swiss economy will grow
at a tepid rate in 2024, the government said on Tuesday,
maintaining its earlier forecast for 1.1% growth this year
albeit with a lower outlook for inflation.
The government in December said that it expected the economy
to grow by 1.1% this year, when adjusted for sporting events,
slower than the long-term average of 1.8%.
Next year the Swiss economy will expand by 1.7%, the State
Secretariat for Economic Affairs (SECO) said, also the same
level as the December forecast.
Still, SECO expects Swiss inflation to decline to 1.5% this
year, down from 2.1% in 2023 and below its previous 1.9%
forecast.
In 2025, Swiss consumer prices are expected to increase
by 1.1%, the same rate as foreseen in December.
"Numerous indicators currently suggest that Swiss economic
growth will remain moderate in the near future," SECO said,
citing stagnation in the eurozone, Switzerland's biggest export
market.
"Overall, Switzerland expects global demand to remain below
its historical average until the end of 2025"
With its broad range of industries, including a strong
pharmaceutical sector, Switzerland has shown resilience in
recent months as other countries like neighbouring Germany have
seen growth stall.
SECO forecast a gradual recovery in the global and European
economy in 2024, which it said it would boost Swiss exports and
investments.
The Organisation for Economic Cooperation and
Development (OECD) last week forecast the Swiss economy would
grow by 0.9% this year and 1.4% in 2024.
Weak foreign demand, tighter financing conditions and
heightened uncertainty were negative factors for the economy the
OECD report said.
Swiss industry has also called on the Swiss National Bank to
help them deal with a strong Swiss franc, which is compounding
weak demand by making their products more expensive abroad.
(Writing by John Revill and Dave Graham; Editing by Rachel More
and Christina Fincher)
((dave.graham@thomsonreuters.com; Reuters Messaging:
dave.graham.thomsonreuters.com@reuters.net))