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Leading economist mildly upbeat about Swiss growth prospects

Power lines
The role of energy supply is crucial for economic growth in Switzerland according to KOF director Jan-Egbert Sturm. Keystone / Arno Balzarini

Economic researcher Jan-Egbert Sturm expects the Swiss economy to stagnate in the next few months.

The director of the Swiss Economic Institute (KOF) at Federal Institute ETH Zurich, said Switzerland had been been quite resilient in the current economic environment.

“Resilience is based on stable political institutions, a healthy society and a thriving economy,” he told the SonntagsBlick newspaper.

He said Switzerland was able to combine all these factors.

“We produce mainly goods in the luxury segment, high-quality niche products. The quality of service is right. In addition, we are reliable partners,” he is quoted as saying.
 
However, Sturm said  high inflation will continue to preoccupy the Swiss for a while.

“Until spring, I expect inflation rates of up to 3.5% due to rising electricity prices. After that, the situation should calm down.” 

Much depends on the energy supply, he said. The increase in key interest rates by the central banks has a delayed effect on inflation, he added.

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