Economic growth in Switzerland is set to return to the long-term average of two per cent in the coming quarters, according to the Swiss Institute for Business Cycle Research's latest leading indicator.
The main Swiss indicator dropped sharply to 0.86 in December from a downwardly revised 0.94 in November. December's indicator is the first to drop below 1.0 since October 1999.
An economist with the Institute said the drop below 1.0 indicated average growth for the economy. He said the indicator vindicated the Swiss National Bank's decision not to raise interest rates in December, despite inflationary fears.
He said the slowdown between November and December was mainly due to weaker growth in new orders in industry, which could reflect a slowdown in exports to the United States.
swissinfo with agencies