In the first quarter of 2024, Switzerland’s economy showed signs of improvement compared to previous quarters, according to the Swiss National Bank. The central bank reported that several economic indicators pointed to a more dynamic economic activity during this period.
During the final three months of 2023, the Swiss economy grew by 0.3% quarter-on-quarter. However, manufacturing remained stagnant, with global demand in manufacturing continuing to be weak and companies facing challenges due to the Swiss franc exchange rate. This put pressure on their profit margins, as manufacturing companies mentioned having little room for pricing flexibility.
Despite these challenges, the SNB recently cut its key interest rate for the first time in nine years and reported that the business outlook is improving. Service sector firms are expecting robust growth to continue, while manufacturing companies anticipate increases in sales. The moderate economic growth in the first quarter of 2024 was mainly driven by the service sector, which contributed significantly to Switzerland’s overall economic performance.