BERN: Switzerland first quarter report 2015 shows that the growth in momentum is not expected this year called it “a year of stagnation”, Credit Suisse.
Despite the negative impact of the strong franc, Switzerland should be able to avoid a recession this year “thanks to the robust situation of the global economy,” Credit Suisse said in a report.
The report, from Claude Maurer, an economic researcher for Credit Suisse, predicts 0.8 percent growth in the Swiss economy, following two percent growth last year.
The franc has appreciated in value about ten percent since January when the Swiss National Bank abandoned its policy of pegging the Swiss currency to the euro at a rate of 1.20 francs per euro.
But Credit Suisse said it considers a “recession to be unlikely”.It said a “super cycle” fed by immigration, the real estate boom, low inflation and low interest rates” continues to underpin consumer spending.
The export sector will also suffer for some time to come, impacting expected growth in 2016 of 1.2 percent, which is below-average growth for Switzerland.
