The Swiss National Bank (SNB) said in its quarterly bulletin on Wednesday that economic growth is likely to slow down slightly in the third quarter. "Signals in manufacturing and services remain mixed, although the divergence between the two sectors has narrowed somewhat," the bank said, as growth in the manufacturing sector remains weak, while services continue to expand.
The SNB predicted that economic activity will be rather muted in the quarters ahead partly due to the international economic environment remaining "unfavorable." GDP growth should be around 1% in 2024 as the recent strengthening of the Swiss franc weighs on economic activity. "In this environment, unemployment is likely to rise somewhat further, whereas the utilization of production capacity is likely to decline slightly. Over the medium term, the growth-dampening effect of the recent appreciation should subside and economic development should gradually improve as a result," the SNB said.
