KOF slashes economic growth forecast
The Swiss economy is in a "long recession", according to the KOF Swiss Economic Institute in Zurich.
KOF on Tuesday again revised its growth forecast for the Swiss economy downwards and is now predicting a 3.3 per cent decline for this year and another 0.6 per cent drop in 2010.
In a statement, KOF said: “The recession, which has been rather mild by international standards owing to its relatively late effect on private consumption, will last longer in Switzerland than in its neighbouring countries.”
The institute said it expected a mild recovery of exports in 2010, which was too late to prevent a pronounced rise in unemployment and sharp slowdown in consumption.
KOF in March forecast a decline in gross domestic product of 2.4 per cent for this year and a 0.3 per cent in 2010.
Switzerland slipped into recession in the middle of 2008 and the Swiss National Bank expects the economy to shrink by up to three per cent this year, which would represent the worst decline in three decades.
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