Experts say Switzerland's economy will grow at a slower rate than expected in 2023 and 2024, but should accelerate the following year.
ADVERTISEMENTSwitzerland has slightly lowered its growth forecast for 2024 given an expected drop in exports - a knock-on effect of the "sluggish momentum" of the eurozone economy.
A group of experts from the country's Ministry of the Economy said on Wednesday that they are now expecting gross domestic product (GDP) excluding sporting events to grow by 1.1%, compared with the previous forecast of 1.2%.
Exports of goods should grow by 2.7% in 2024, compared with 4.1% previously forecast, they said in a press release.
"Investment is expected to grow only slightly in the face of falling demand and rising financing costs", said the Ministry of the Economy in a statement. It added however that "private consumption should continue to provide support" for the Swiss economy.
For 2023, however, the analysts left their growth forecast unchanged at 1.3%, noting a mixed picture for the global economy: the US exceeded expectations in the third quarter and there's been "sluggish development" in the eurozone, particularly in German industry.
While the Swiss economy grew "moderately" in the third quarter thanks to the services sector, the most economically sensitive branches of industry shrank.
"While we can expect international monetary policy to continue to exert a slowing effect, there is no global recession in sight", the analysts said, adding that "developments on the labour markets remain favourable and inflation is easing".
The group of analysts, which updates its forecasts every three months, expects the Swiss economy to grow below its usual average in 2023 and 2024, but to accelerate in 2025 thanks to "a gradual recovery in the global economy, particularly in Europe".
For 2025, they expect the Swiss economy to grow by 1.7%.
Elsewhere, the KOF economic institute said in a press release that it forecasts GDP growth of 1.2% in 2023 and 1.3% in 2024, in the face of a "challenging global economic environment, which is clouding the outlook for the Swiss economy".
"The Swiss economy will be supported primarily by domestic activity until 2025, while foreign trade will be curbed by the weak global economy", according to economists at the Zurich-based institute.
