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Economiesuisse expects slow growth and low inflation

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Prices are expected to increase further but at a low level, according to experts of economiesuisse. © Keystone / Ti-press / Alessandro Crinari

Inflation in Switzerland in 2023 is expected to remain above the Swiss National Bank's (SNB) target range, according to the leading Swiss business umbrella organisation.

Economiesuisse said that although the country’s economy would likely avoid a recession next year, the sluggish global economic environment should also affect growth trends.

Inflation is expected to rise to 2.9% in 2022 and 2.7% in 2023, a statement said on Monday.

Economiesuisse therefore expects the SNB to tighten its key rate further later this month when it reviews the economic and monetary situation. The Swiss central bank has put an end to more than seven years of negative interest rates, raising its key rate twice, in June and September, to 0.5%.

The central bank is aiming for an inflation rate of between 0% and 2%. This target will not be reached next year, however, despite a year-on-year weakening of energy prices in 2023, the umbrella organisation said.

It also expects gross domestic product (GDP) to grow by 1.8% in 2022 and by 0.6% next year.

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