ZCZC
BCN-42
SWISS-ECONOMY-GROWTH
Swiss economy forecast to grow 2.4 pct in 2018
GENEVA, June 20, 2018 (BSS/Xinhua) – Switzerland is currently experiencing
an “increasingly broad-based upswing,” with a government report Tuesday
sticking to its forecast that the economy will grow by 2.4 percent in 2018.
Statistics from the federal government’s State Secretariat for Economic
Affairs (SECO) indicated that the positive trend applied to Switzerland’s
economy domestically as well as on an international level.
“Industrial companies are continuing to look to the future with confidence
and are anticipating robust growth, including in international business,”
said the report.
The report, however, cautioned that certain global economic risks have
increased since the last forecast in December.
“The trade dispute between the U.S. and key trade partners has escalated
to new heights after the implementation of tariffs on steel and aluminum
imports,” said SECO, noting that the European Union has been brought into the
spat.
“If the situation were to deteriorate further and trigger a trade war
between the major economic areas, this would significantly curb global trade,
Swiss exports and, ultimately, economic growth in the medium term,” said the
report.
Currently, however, the booming global economy combined with favorable
exchange rates are increasing demand for Swiss growth.
For 2019, SECO predicts that the Swiss economy’s growth will drop to 2
percent, largely because the global economy is expected to lose momentum
after a sustained period of strong growth.
Another risk factor identified by the report is deepening political
uncertainty in Italy, which could have ripple effects through the financial
market and could create “considerable upward pressure” for the Swiss franc.
The report noted that adjustments to this year’s forecast are still
possible, with the Swiss economy either performing worse, or better than
currently predicted.
BSS/XINHUA/HR/1455