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Swiss Economy Holds on to Modest Growth, Despite Manufacturing Concerns

Swiss economy expected to have improved moderately in first quarter, according to SNB

Swiss Economy Holds on to Modest Growth, Despite Manufacturing Concerns

The Swiss economy is expected to have performed slightly better in the January-March period compared to previous quarters, according to the Swiss National Bank. Despite this, the central bank cautioned that manufacturing remains a concern, with weak global demand and challenges posed by the Swiss franc exchange rate affecting companies’ pricing and profitability.

During the final three months of 2023, Switzerland’s economy grew by 0.3% quarter-on-quarter. However, economic growth during the first quarter of 2024 was “moderate” and driven primarily by the service sector, while manufacturing continued to stagnate. The SNB recently cut its key interest rate for the first time in nine years in an effort to stimulate economic activity.

Despite these challenges, there are signs that businesses are optimistic about the future. Services sector firms are anticipating robust growth to continue, and manufacturing companies are expecting increases in sales. The SNB remains optimistic about Switzerland’s economic prospects overall.

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