Swiss Economy Performs Moderately Better in January-March, but Manufacturing Stagnates

Swiss economy shows signs of improvement in first quarter, according to SNB | WSAU News/Talk 550 AM · 99.9 FM

The Swiss National Bank’s report released on Wednesday suggests that the country’s economy likely performed slightly better during the January-March period compared to previous quarters. This was mainly driven by the service sector, which experienced moderate growth, while manufacturing stagnated.

While the SNB notes that economic activity was slightly more dynamic in the first quarter of 2024 compared to preceding quarters, it also highlights weak global demand in the manufacturing sector as a concern. Companies are facing challenges due to the Swiss franc exchange rate, which is putting pressure on their margins.

Manufacturing companies are struggling to adjust pricing to cope with these challenges, resulting in pressure on their margins. However, the SNB has recently cut its key interest rate for the first time in nine years and mentioned that the business outlook is improving. Service sector firms expect robust growth to continue, while manufacturing companies anticipate increases in sales.

Overall, the Swiss National Bank’s report paints a mixed picture of the economy, with different sectors experiencing varying levels of growth and challenges.

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