OECD predicts slowdown in economic growth
The Organisation for Economic Co-operation and Development says Swiss economic growth will slow from two per cent this year to 1.4 per cent in 2009.
In its Economic Outlook, the Paris-based think tank said Switzerland would not escape the effects of global financial turmoil.
The annual forecast says slowing job creation will drive up unemployment, but added that inflation – now at a 15-year-high of 2.9 per cent – was likely to fall as oil price effects subside.
The OECD also warned that the Swiss budget surplus “could shrink and may reach balance in 2009”.
It said one of the challenges for Switzerland was to improve incentives for Swiss cantons to help place unemployed people back in the workforce.
The organisation said most industrialised countries were facing several quarters of weak growth and high inflation.
It said this was the combined outcome of financial market turmoil, cooling housing markets and sharply higher commodity prices.
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