Concerns mount over economic growth
Switzerland's leading growth barometer fell to its lowest level in more than five years in November, fuelling recession worries.
The KOF Swiss Economic Institute in Zurich said in its prediction that Swiss economic growth was likely to be flat in the coming months.
The indicator, which points to the economy’s potential performance in six months’ time, fell to – 0.05 in November from a downwardly revised 0.28 in October. This was the lowest since June 2003 and well below analysts’ expectations.
“Exports, the traditional driver of Swiss growth, in particular have suffered from the global growth slowdown, while domestic demand is unlikely to support growth to the extent seen during the beginning of the year,” commented Saara Tuuli from 4Cast.
Earlier this month the Swiss National Bank cut interest rates by 100 basis points in a bid to avoid recession. Statistics also showed that employment growth eased in the third quarter and should weaken further in the next few months.
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