Swiss Economy Outpaces Expectations in First Quarter, but Manufacturing Companies Remain Concerned

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

In a report released on Wednesday, the Swiss National Bank stated that the country’s economy likely performed slightly better during the January-March period than in the prior quarters. The SNB noted that many economic indicators suggest that economic activity was slightly more dynamic in the first quarter of 2024 compared to the preceding quarters.

Switzerland’s economy grew by 0.3% quarter-on-quarter during the final three months of 2023, with manufacturing continuing to stagnate while service sector growth was moderate. However, weak global demand in the manufacturing sector is a concern for companies facing challenges due to exchange rate fluctuations.

Manufacturing companies are struggling to adjust pricing and cope with pressure on margins due to exchange rate fluctuations, while service sector firms anticipate robust growth to continue. The SNB, which recently cut its key interest rate for the first time in nine years, mentioned that business outlook is improving and manufacturing companies expect increases in sales. Overall, the Swiss National Bank’s report indicates a mixed picture of the economy, with different sectors experiencing varying levels of growth and challenges.

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