The Swiss Business Federation, economisuisse, says the economy should grow by two per cent this year, despite uncertainties in the world economy.

The Federation, which is based in Zurich and lobbies at the political level for Swiss business, says the economy's solid performance will be supported by private consumption and increased activity in the construction industry.

Echoing the views of other economic research experts, the Federation has revised its projections for the economy downwards. Last December, it had estimated that the economy would grow by between 2 and 2.6 per cent.

For Switzerland, the growth in 2001 would still be "in tune with the production potential of the country," the Federation said in its report on the state of the Swiss economy.

However, it added that the uncertainties in the global economy should not be forgotten.

A hard landing for the United States economy and a more marked weakening in Japan could affect the world economy and have noticeable effects in Switzerland, the Federation warned.

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