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Swiss economy expected to show modest improvement in first quarter, according to SNB

Byeditor

Mar 27, 2024

The Swiss National Bank stated that Switzerland’s economy likely performed better in the first quarter of 2024 compared to previous quarters. The central bank mentioned in a report that many economic indicators showed increased dynamism during this period. In the last quarter of 2023, the Swiss economy saw a 0.3% quarter-on-quarter growth.

According to the SNB, the moderate economic growth in the first quarter was primarily driven by the service sector, while manufacturing remained stagnant. Companies in the manufacturing sector are facing challenges due to weak global demand and the Swiss franc exchange rate. With limited pricing flexibility, these companies are experiencing pressure on their profit margins.

Following its decision to cut interest rates for the first time in nine years, the SNB also mentioned an improving business outlook. Service sector firms expect continued strong growth, while manufacturing companies anticipate an increase in sales. The central bank believes that the overall economic situation is showing signs of improvement despite the challenges faced by the manufacturing sector.

By editor

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