Switzerland’s economy likely performed slightly better in the January-March period compared to previous quarters, according to the Swiss National Bank (SNB). The central bank stated that many economic indicators suggest that there was slightly more dynamic economic activity in the first quarter of 2024.
Despite this positive outlook, manufacturing companies are facing challenges due to weak global demand and the Swiss franc exchange rate. Companies are struggling with pricing, leading to pressure on their margins. In response to these challenges, the SNB recently cut its key interest rate for the first time in nine years.
The SNB noted that during the first quarter of 2024, economic growth was “moderate” and driven primarily by the service sector, while manufacturing continued to stagnate. The business outlook is improving, with services sector firms expecting robust growth to continue and manufacturing companies anticipating increases in sales. The SNB remains optimistic about Switzerland’s economic prospects overall.
