Swiss economy expected to show modest improvement in first quarter, according to SNB
Economy

Switzerland’s Economy Rebounds in Q1, but Manufacturing Sector Struggles

In the first quarter of 2024, Switzerland’s economy likely performed better compared to previous quarters, according to the Swiss National Bank (SNB). The central bank stated this in its report, which mentioned that many economic indicators showed increased dynamism during this period.

The moderate economic growth in the first quarter was primarily driven by the service sector, while manufacturing remained stagnant. Companies in the manufacturing sector are facing challenges due to weak global demand and the Swiss franc exchange rate. With limited pricing flexibility, these companies are experiencing pressure on their profit margins. Despite these challenges, service sector firms expect continued strong growth, while manufacturing companies anticipate an increase in sales.

Following its decision to cut interest rates for the first time in nine years, the SNB also mentioned an improving business outlook. The central bank believes that the overall economic situation is showing signs of improvement despite the challenges faced by the manufacturing sector.

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