Swiss government sees economic slowdown in 2023 but no recession

In its latest economic forecasts, Switzerland’s State Secretariat for Economic Affairs (SECO) said on Tuesday, the government expects the country's economic growth to slow next year but is unlikely to enter a recession.

Key takeaways

However, the energy situation in Europe is likely to remain tense with gas and electricity prices running high.

Furthermore, high international inflation and the tightening of monetary policy are likely to curb demand.

Swiss government forecasts 2022 CPI at +2.9% (vs +3.0% in prior projections).

The Swiss government anticipates that the Consumer Price Index will +1.5% in 2024.

Swiss government sees 2024 CPI at +1.5%. Sees 2023 CPI at +2.2% (previous forecast was +2.3%).

2022 GDP growth forecast at +2.0% (previously +2.0%).

2023 GDP growth forecast at +1.0% (previously +1.1%).

2024 GDP growth forecast at +1.6%.

Market reaction

USD/CHF dropped to daily lows at 0.9339 on the SECO forecasts before rebounding to 0.9354, where is now wavers. The pair is down 0.07% on the day.

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