Credit Suisse issues optimistic forecast

Economists at the Credit Suisse bank are optimistic about Switzerland's immediate economic prospects in their quarterly report issued on Wednesday.

They predict that Swiss gross domestic product will grow in 2008 by 1.9 per cent and by 1.6 per cent in 2009.

At the same time, the bank thinks that inflation will increase, averaging 2.2 per cent. In 2007 inflation stood at 0.7 per cent.

It forecasts a dip in unemployment in 2008 to average 2.6 per cent, with a rise to 2.7 per cent in 2009 – the same as in 2007.

Crises in the credit and finance markets could still be a danger to the economy, it says, as could rises in the price of raw materials and oil.