According to the Swiss National Bank, the Swiss economy is expected to have slightly better performance in the January-March period compared to previous quarters. The central bank released a report stating that many economic indicators suggest a more dynamic economic activity in the first quarter of 2024. In the final three months of 2023, the Swiss economy grew by 0.3% quarter-on-quarter.
The service sector was the main driver of moderate growth during this period, while manufacturing remained stagnant. Weak global demand and challenges related to the Swiss franc exchange rate were highlighted as concerns for manufacturers. Companies in manufacturing are facing pressure on their margins due to pricing issues, which is affecting their overall performance.
In recent times, the SNB cut its key interest rate for the first time in nine years, indicating an improving business outlook. Service sector firms are anticipating robust growth to continue, while manufacturing companies are looking forward to an increase in sales. This positive outlook suggests a potential improvement in economic conditions for Switzerland in the near future.
In summary, despite some concerns about weak global demand and challenges related to currency exchange rates, the SNB expects a slight improvement in economic performance during the January-March period compared to previous quarters. The service sector remains a major contributor to growth, while manufacturers face pricing pressures that are limiting their potential for growth.
However, with an improving business outlook and service sector firms continuing their robust growth trajectory, there is hope that Switzerland may soon see an overall improvement in its economic conditions.