Consumers stroll alongside the road after the Swiss authorities relaxed a few of its COVID-19 restrictions, because the unfold of the coronavirus illness continues, on the Bahnhofstrasse purchasing road in Zurich, Switzerland March 1, 2021. REUTERS/Arnd Wiegmann/File Photograph
ZURICH, Sept 20 (Reuters) – The Swiss authorities considerably reduce its financial development forecasts on Tuesday, citing rising dangers from a “tense vitality scenario and sharp worth will increase”.
It now expects the nation’s economic system to develop 2.0% this 12 months, down from its June forecast for two.6% development. learn extra
In 2023 the economic system is anticipated to develop by 1.1%, the State Secretariat for Financial Affairs (SECO) mentioned, down from the earlier expectation of a 1.9% improve.
The figures are adjusted to take away the impact of main sporting occasions.
“After a constructive first half of the 12 months 2022, the Swiss economic system now faces a deteriorating outlook,” SECO mentioned. “A tense vitality scenario and sharp worth will increase are weighing on financial prospects, particularly in Europe.”
SECO elevated its inflation forecast, saying it anticipated client costs to rise by 3% in 2022 and a couple of.3% in 2023. Beforehand it had anticipated inflation of two.5% this 12 months and 1.4% in 2023.
Earlier this month three of Germany’s main financial institutes lowered their forecast for Europe’s largest economic system subsequent 12 months, predicting excessive vitality costs brought on by the Ukraine conflict would take their toll. learn extra
Switzerland, which is much less depending on Russian gasoline and has seen considerably decrease inflation than the neighbouring euro zone, historically has one in every of Europe’s extra strong economies.
SECO mentioned a beneficial unemployment scenario in Switzerland, with an anticipated jobless charge of two.2% this 12 months and a couple of.3% subsequent, would proceed to help home demand.
However international demand was anticipated to weaken, with much less demand for Swiss merchandise anticipated from the euro zone, the US and China than beforehand forecast.
The general outlook for the Swiss economic system largely trusted the worldwide economic system and the way the vitality provide scenario developed, SECO mentioned, saying the sharp drop in Russian gasoline flows had raised the danger of shortages in Europe.
Though its forecasts had been primarily based on the belief there can be no shortages, the Swiss economic system can be “severely affected” if there was a discount in gasoline or electrical energy, it mentioned.
Rising rates of interest, launched by central banks all over the world to deal with inflation, additionally elevated issues related to world debt and monetary markets, it added.
Reporting by John Revill; Enhancing by Michael Shields and Susan Fenton
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