UBS cuts economic growth forecast
New forecasts by UBS bank predict Switzerland’s gross domestic product (GDP) will grow next year by 0.4 per cent, down from its previous prediction of 0.8 per cent.
Releasing latest estimates on Friday, the bank also revised down its forecast for Swiss GDP growth in 2013 from two per cent to 1.7 per cent.
The bank said the Swiss economy was showing clear signs of fatigue, citing weak third-quarter GDP figures and the further drop in the purchasing managers’ index (PMI) below the critical level of 50.
UBS economists said the background for this rapid slowdown was the weak economic environment in Europe: a recession in Europe would obviously have serious effects on the Swiss economy, they said.
The bank is forecasting the European economy will shrink by 0.7 per cent next year.
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