The State Secretariat for Economic Affairs said that Swiss economic forecasts remain largely unchanged, with growth expected to stay below average this year. The Expert Group on Business Cycles projects a modest growth rate of 1.2% for the Swiss economy in 2024, slightly up from March forecast of 1.1%.
Challenges such as low capacity utilisation in industrial production and high financing costs are likely to curb investments. However, exports will provide some support, aided by the recent depreciation the Swiss Franc. More significantly, growth will be driven by private consumption, buoyed by rising employment and a stable inflation rate, which is expected to average 1.4% for the current year, a slight decrease from the March forecast of 1.5%.
Looking ahead, GDP growth for 2025, adjusted for sporting events, is projected to reach 1.7%, with inflation at 1.1%. Both were unchanged from prior forecasts.
Full SECO release here.
