Swiss Economy Outlook Improves for Q1 2024, Despite Slow Growth in Manufacturing Sector

Swiss economy shows signs of improvement in first quarter, according to SNB | WSAU News/Talk 550 AM · 99.9 FM

During the January-March period, Switzerland’s economy likely performed slightly better than in the prior quarters, according to the Swiss National Bank. The central bank released a report on Wednesday stating that many economic indicators suggest that economic activity was slightly more dynamic during the first quarter of 2024 compared to the preceding quarters.

The Swiss economy had grown by 0.3% quarter-on-quarter during the final three months of 2023. However, manufacturing companies continue to stagnate due to weak global demand and challenges with pricing due to the Swiss franc exchange rate. The SNB noted that moderate economic growth during the first quarter was mainly driven by the service sector, which experienced robust growth.

Service sector firms expect their growth to continue, while manufacturing companies anticipate increases in sales. Despite this mixed picture, the SNB mentioned that its business outlook is improving as it recently cut its key interest rate for the first time in nine years. This decision is expected to boost investment and consumer spending, ultimately leading to positive impacts on economic growth.

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