The Swiss National Bank stated that Switzerland’s economy likely experienced a slight improvement during the first quarter of 2024 compared to previous quarters. The central bank noted that many economic indicators pointed towards slightly more dynamic economic activity during this period.
According to the SNB report, the Swiss economy had grown by 0.3% quarter-on-quarter in the final months of 2023. The bank highlighted that the moderate economic growth in the first quarter was primarily driven by the service sector, while manufacturing continued to show stagnation.
In terms of manufacturing, the SNB expressed concern over weak global demand and the challenges posed by the Swiss franc exchange rate. Companies in this sector are facing pressure on margins due to limited pricing flexibility.
Despite these challenges, the SNB mentioned that the business outlook is improving. Service sector firms are expecting continued robust growth, while manufacturing companies anticipate an increase in sales. Last week, the central bank cut its key interest rate for the first time in nine years.
Overall, Switzerland’s economy appears to be showing signs of improvement, with the service sector leading the way in driving economic growth. The SNB is closely monitoring key economic indicators to assess the country’s economic performance.