Switzerland’s Economy Set for Moderate Growth in First Quarter of 2024, Despite Challenges in Manufacturing Sector

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

In the January-March period, Switzerland’s economy is expected to have performed slightly better than previous quarters, according to the Swiss National Bank (SNB). The central bank cited several economic indicators that suggest there was more dynamic economic activity in the first quarter of 2024.

During the final three months of 2023, Switzerland’s economy grew by 0.3% quarter-on-quarter. However, the SNB noted that economic growth in the first quarter of 2024 was “moderate” and driven primarily by the service sector, while manufacturing continued to stagnate.

The main concern in manufacturing is weak global demand, with companies also facing challenges due to the Swiss franc exchange rate. Companies are struggling with pricing, leading to pressure on their margins. In response to these challenges, the SNB recently cut its key interest rate for the first time in nine years.

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

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