ZURICH, March 16 (Reuters) - The Swiss government
expects the country's economic growth to cool to a below average
rate of 1.1% in 2023, before growth accelerates to 1.5% next
year, it said on Thursday.
The country's economy will slow from the 2.1% growth rate
achieved in 2022, albeit slightly above the 1% level forecast in
December, the State Secretariat for Economic Affairs (SECO)
said.
"This would be significantly below average but not drive the
economy into recession," SECO said. "The energy situation in
Europe has eased in recent months. However, inflationary
pressure remains high internationally."
In 2024 the Swiss economy, when adjusted for sporting
events, is expected to grow by 1.5%, slightly down from the
December forecast of 1.6%.
Both forecasts are below average GDP growth in Switzerland,
traditionally one of Europe's more resilient economies, where
output expanded by an average of 1.8% between 2012 and the pre-
pandemic year 2019.
The Swiss economy grew by 2.1% in 2022, according to
provisional calculations published by SECO last month.
Switzerland has benefited from a mild winter which meant
Europe skirted an energy crisis, while blockages and bottlenecks
in supply chains have continued to ease.
Still Swiss inflation has remained more persistent than
previously expected, a situation which is reducing spending
power of consumers.
Monetary policy has also become more restrictive, with
interest rates hikes expected in Switzerland and abroad,
dampening demand from businesses and consumers.
Swiss inflation is expected to fall from 2.8% in 2022 to
2.4% this year, SECO said, before dipping to 1.5% in 2024.
The forward-looking KOF Economic Barometer rose to 100 in
February, continuing a recent positive trend, while the Swiss
engineering sector has sounded a cautiously optimistic note for
this year.
Credit Suisse on Wednesday said it expected the Swiss
economy to grow by 0.8% this year, before growth picks up again
to 1.4% in 2024.
The Swiss National Bank is due to give its latest economic
forecasts when it announces the outcome of its quarterly
monetary policy review on March 23.
(Reporting by John Revill; Editing by Sonali Paul)
Messaging: john.revill.thomsonreuters.com@reuters.net))
