According to a recent report by the Swiss National Bank, Switzerland’s economy likely performed slightly better during the January-March period than in previous quarters. The central bank stated that many economic indicators suggest that economic activity was slightly more dynamic in the first quarter of 2024 compared to the preceding periods.
During the final three months of 2023, the Swiss economy grew by 0.3% quarter-on-quarter. The SNB noted that “moderate” economic growth during the first quarter was mainly driven by the service sector, while manufacturing continued to stagnate. Weak global demand in the manufacturing sector was highlighted as a concern, with companies facing challenges due to the Swiss franc exchange rate.
Manufacturing companies are struggling to adjust pricing to cope with exchange rate challenges, putting pressure on their margins. The SNB, which recently cut its key interest rate for the first time in nine years, mentioned that the business outlook is improving. Service sector firms expect robust growth to continue, while manufacturing companies anticipate 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.
