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ETH Zurich experts downgrade Swiss economic growth forecast

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The KOF experts say the Swiss economy is holding its own also due to growing domestic consumption. Keystone/Alexandra Wey

The KOF Swiss Economic Institute has revised downwards its growth forecast for this year and 2023.

However, the unit of the ETH Zurich remains optimistic despite the war in Ukraine and rising inflation, according to a statementExternal link published on Wednesday.

The KOF institute is forecasting that Switzerland’s gross domestic product will rise 2.7% this year and by 1.6% next year, driven by stable growth in industry and increasing domestic consumption.

The figures are slightly down from March when KOF expected GDP growth of 2.8% for the current year.

The economists say that the inflation rate in Switzerland is relatively low compared with other countries – 2.6% this year and 1.5% in 2023 – down 0.2% from the March forecast.

Last week, the State Secretariat for Economic Affairs (Seco) downgraded its growth forecast to 2.6%.

A third major panel of experts, the BAK BaselExternal link institute, is still to announce its latest assessment. In March, it put economic growth at 2.3% in 2022 and 1.7% in 2023. It also warned that inflation would be above 2%.

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