Swiss Economy Seen Picking Up as Global Recovery Gains Pace

Economic momentum in Switzerland is forecast to pick up in the months ahead as immunizations get rolled out and restrictions to curb the pandemic are lifted, the government said.

Gross domestic product is due to expand 3% this year, the State Secretariat for Economic Affairs said on Thursday. That’s in line with its previous forecast.

“Various consumer opportunities that were largely unavailable in the winter months would re-emerge and lead to turnover rising again in the affected sectors,” the SECO said, adding output is due to exceed its pre-crisis level by late in the year. “At the same time, growing global demand is set to boost exports.”

20212022
GDP growth rate (sporting event adj.)3.03.3
Unemployment rate3.33.0
CPI (%)0.40.4

While investors expect a surge in economic activity in the U.S., European countries are likely to lag due to the slow deployment of vaccines.

The silver lining for Switzerland is that the investor repositioning caused a drop in the franc, which will give economic growth and inflation a fillip.

The Swiss National Bank’s negative interest rates and occasional foreign exchange interventions are designed to curb the franc. SNB Vice President Fritz Zurbruegg told newspaper Blick in an interview earlier this week that loose stance remained essential.

Demand from Asia for Swiss exports should also buttress momentum.

©2021 Bloomberg L.P.

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