Wednesday, December 18, 2013

Switzerland lifts 2013 GDP forecast to 1.9%

ZURICH--Switzerland lifted its economic-growth forecast for this year slightly thanks to consumer spending and expectations the world-wide economic recovery will boost demand for its industrial goods.

"Providing the international economy continues on a gradual path of recovery there are good prospects for a strengthening economic upturn in Switzerland over the next two years," the department of economics said in a statement on Thursday.

It maintained its projection for 2014. It expects the average rate of unemployment to edge lower next year.

Gross domestic product will expand 1.9% this year, government agency Seco said. That is up slightly from a previous forecast of 1.8%. It kept its projection for growth in 2014 steady at 2.3% and expects the economy to grow 2.7% in 2015.

The economy grew for a fifth straight quarter in the three months through September as a revival in foreign demand for machinery and industrial goods offset stagnant domestic consumption.

The unemployment rate is likely to average 3.2% this year and then edge down to 3.1% in 2014, Seco said.

The consumer price index is likely to contract by an average 0.2% this year--down from a previous projection of -0.1%. It will gain 0.2% next year compared with a previous forecast of 0.3%.

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