Buoyed by strong international demand, Switzerland on Wednesday raised its economic growth forecast for 2018 to 2.9%, compared with the 2.4% previously envisaged.
The Swiss economy is in a boom period according to the experts of the Swiss Confederation. They have therefore revised their gross domestic product (GDP) growth forecasts upwards, given the good economic conditions that are stimulating trade and massive corporate investment. The growth rate is now expected at 2.9% for 2018, compared with 2.4%. “Switzerland is currently experiencing a boom phase, marked by strong GDP growth for several quarters”, noted the State Secretariat for Economic Affairs (Seco) in its September 2018 review, highlighting the rise in employment and the fall in unemployment.
This development results from the good performance of industry, achieved thanks to a production capacity utilisation rate at its highest since 2011, and full order books. The services sector also reports “very good business”, according to the Confederation’s group of experts. Exports, driven by a franc that is more favourable to exports than in the last three years, have also boosted growth. Furthermore, economists are counting on “robust” growth “at global level”, notably in the United States and China.
Moreover, Swiss companies are already on deck, increasing their production capacity to meet strong international demand. In this context, the unemployment rate should average 2.6% over the year as a whole, according to the forecasts of the Confederation’s group of experts. Seco also noted “high” political uncertainty in Europe, “notably due to the lack of clarity surrounding the orientations of the Italian government”, as well as the uncertainty surrounding Brexit.