BERN: The Swiss bank reported that, Swiss will survive recession this year but warned that strong growth momentum is not expected in 2015.
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.
Unemployment insurance, meanwhile is acting as an “automatic stabilizer” and an economic safety net, while the central bank stands ready to intervene if the Swiss franc appreciates in value too much, the report said. However, the export sector will suffer for some time to come, impacting expected growth in 2016 of 1.2 percent, which is below-average growth for Switzerland.