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Experts pessimistic about 2023 outlook for Swiss economy

Gas pipeline
The spectre of a shortage of gas supplies in western Europe has dampened the economic outlook for Switzerland. Keystone/Stefan Sauer

The BAK Economics market research institute has confirmed its forecast for the Swiss economy this year, but it is more pessimistic about 2023.

The Basel-based institute said it expected growth of Switzerland’s gross domestic product of 2.5% in 2022, as the economy coped well with a series of challenges.

However, the BAK experts have downgraded the growth outlook for next year to 0.9% from 1.4% in June, according to a survey published on Tuesday.

They warn that the expected energy shortage in Europe and a tightening of the monetary policy by the central banks would have a negative impact on Switzerland’s economy.

Economic growth forecasts by major research institutes and organisations range between and 1.8% and 2.8% for this year and 0.9% to 1.6% for 2023.

BAK slightly raised its inflation forecast to 2.6% for 2022, up 0.1%. Experts have reiterated that they expect the rate to drop to around 1% next year.

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