The economy will “underperform” this year and next, largely due to inflation issues and geopolitical troubles, the Organisation for Economic Cooperation and Development (OECD) reckons.
OECD experts said on Wednesday they predicted growth of 0.6% in Swiss GDP in 2023, and 1.2% in 2024 – a significant slowdown from the post-pandemic boom, when the economy grew by 4.2% in 2021 and 2.1% in 2022.
It also means the Swiss economy will remain “below its potential” until the second quarter of 2024. The causes: tighter monetary policy, inflation, and geopolitical tensions – including concerns around gas supplies next winter.
However, following the collapse of Credit Suisse in March, and its subsequent takeover by UBS – a deal set to be finalised next week – the OECD reckons that fears around the Swiss banking sector should “remain under control”.
It also predicts continued growths in exports both this year (+4.2%) and next (+3.1%).
As for inflation, which slowed in May to its lowest rate since the Ukraine war started, the OECD does not however expect it to fall below the 2% mark – in line with the objective of the Swiss National Bank – before next year. Prices are set to rise 2.4% in 2023 and 1.2% in 2024, it forecasts.
More
More
Swiss industry faces record shortage of skilled workers
This content was published on
A visit to Bern-based company MPS Micro Precision Systems, which urgently needs to hire specialists to support its growth.
This content was published on
At the stroke of 4am on Monday, the street lights went out in Basel's city center for the carnival kick-off, known as Morgenstreich.
Swisscom records over 200 million cyberattacks per month
This content was published on
Swiss state-owned telecommunications provider Swisscom has to defend against 200 million cyberattacks on its own infrastructure every month.
This content was published on
International Women's Rights Day saw some 4,800 demonstrators march in the Swiss cities of Lausanne and Geneva on Saturday.
Diversity and equality ‘under threat’: ex-Swiss minister
This content was published on
Dismantling diversity programmes is a backwards step for equality, warns former Swiss government minister Simonetta Sommaruga.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.