Swiss National Bank (SNB) said in its quarterly bulletin on Wednesday that the global growth outlook for the coming quarters "remains subdued" and that the Swiss economy is likely to grow at a modest pace, with the gross domestic product (GDP) adding around 1% this year. "The level of uncertainty associated with the forecast is still high, due also to the turmoil in the global financial sector," SNB said.
The bulletin indicated that manufacturing in Switzerland is "likely to remain lackluster" while the outlook for services is more positive. Private consumption should stay subdued due to inflation, and foreign demand is not expected to contribute significantly to the economy. Unemployment is likely to remain low, and the utilization of production capacity looks set to decline somewhat. Uncertainty remans high, with the main risks being an economic downturn abroad and adverse effects of the turmoil in the global financial sector.
