Switzerland reiterates its positive economic forecast

SECO expects overnight stays by tourists to further recover in 2014 Keystone

The Swiss government said on Thursday that it expects the growth of its gross domestic product to accelerate in 2014 and 2015, gradually lifted by exports and recovering numbers of overnight stays by foreign guests.

The expert group of the State Secretariat for Economic Affairs (SECO) reiterated that it expects the Swiss GDP to grow 2.3% in 2014, up from 1.9% in 2013. For 2015 it forecasts growth of 2.7%, SECO said in a statement on Thursday.

“Further and consequently, broader-based economic expansion is expected, since the domestic economy, which has held up well since the financial crisis, should remain robust,” SECO said. “Providing that the international economy continues on a gradual path of recovery there are good prospects for a strengthening economic upturn in Switzerland over the next two years.”

The Swiss economy is growing at a higher-than-average rate compared with other European countries. The economic upturn is also reflected by higher employment levels in the industry sector, according to the report.

Globally, economic recovery is also making good progress, particularly in the United States. SECO also expects “gradual” improvement in the economic activity in the eurozone. Economic growth has already started picking up again in core countries like Germany, and the forecasters also expect the downturn in the periphery to come to an end.

The domestic economy is expected to remain “robust”, supported by on-going immigration and low interest rates. Nevertheless, the experts warn that the lower salary increases will weigh on household consumption in 2014.

The SECO experts forecast an unemployment rate of 3.1% for 2014 and 2.8% for 2015, down from 3.2% in 2013. They also expect inflation rates of 0.2% for 2014 and 0.4% for 2015, compared with -0.2% for 2013.