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IMF lowers Switzerland’s 2025 growth forecast

IMF lowers growth forecast for Switzerland for 2025 slightly
IMF lowers growth forecast for Switzerland for 2025 slightly Keystone-SDA

The International Monetary Fund (IMF) has slightly lowered its forecast for Switzerland’s economic growth next year. The organisation now anticipates a growth rate of 1.3% in 2025.

This comes from the World Economic Outlook report released on Tuesday. In March, IMF economists had projected a growth rate of 1.4%.

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For 2024, the IMF still expects the Swiss economy to grow by 1.3%, according to the report. Regarding consumer prices, the IMF forecasts inflation to drop from 1.3% this year to 1.0% in 2025.

+ Read more: Swiss jobless rate hits record low

IMF forecasts improved prospects for the global economy

Meanwhile, the IMF’s outlook for the global economy is slightly more optimistic, though not overly positive. Growth is expected to be 3.2% both this year and next. The IMF describes the global outlook as “stable, but not overwhelming” and cautions about uncertainties and risks.

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The global fight against inflation has been “largely” won, though price pressures remain in some countries, according to the report. However, the outlook for the global economy is still fraught with risks. The IMF warns that escalating regional conflicts, especially in the Middle East, could seriously impact commodity markets. Additionally, maintaining a tight monetary policy for too long could also cause problems.

+ Q1/2024 check-up: how the Swiss economy is faring

Translated from German by DeepL/sp

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