Switzerland’s Economy Expected to Surge in First Quarter of 2024, Thanks to Strong Service Sector Performance

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

In the first quarter of 2024, Switzerland’s economy is expected to have performed better than in previous quarters, according to the Swiss National Bank (SNB). The central bank stated this in a report, citing many economic indicators that showed increased dynamism during this period.

The SNB attributed the moderate growth in the first quarter to 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, the SNB believes that there are signs of improvement in the overall economic situation. Following its decision to cut interest rates for the first time in nine years, the central bank also mentioned an improving business outlook. Service sector firms expect continued strong growth, while manufacturing companies anticipate an increase in sales.

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