Economy forecast to grow by 1.9 per cent

Business leaders believe the drop in growth in the Swiss economy has bottomed out and have offered a more positive outlook for 2010 and 2011.

The Swiss Business Federation, economiesuisse, on Monday predicted economic growth of 1.9 per cent for this year and 1.6 per cent for next year.

In 2009 growth declined by 1.6 per cent.

Economiesuisse said the Swiss economy had weathered the storm relatively well compared with other countries, and the moderate increase in unemployment had helped spare the domestic economy from the worst of the global crisis.

Jobless rates would reach four per cent on average in 2010 and 3.6 per cent in 2011, it said. Unemployment hit an all-time high of 5.5 per cent in June 2009.

The federation said it was “cautiously optimistic” for the future, with sectors such as engineering – particularly hard hit when global demand suffered – expected to report positive growth rates this year and next.

swissinfo.ch and agencies