Exports and consumer spending will be the driving force behind a steady rise in economic growth in Switzerland, according to the Munich-based Ifo economic institute.

Exports and consumer spending will be the driving force behind a steady rise in economic growth in Switzerland, according to the Munich-based Ifo economic institute.

Ifo says exports are set to increase by nearly five per cent this year. Also supporting the upturn will be a strong improvement in private consumption, which the institute sees rising by two per cent.

The result is a forecast increase in Gross Domestic Product of two per cent this year, up from 1.5 per cent in 1999.

The outlook for the job market is also optimistic: the Ifo institute expects unemployment on average to be around the 2.25 per cent level in 2000, down from 2.7 per cent in 1999.

Despite the forecast economic growth, inflationary pressures are expected to remain benign. The economic research institute expects the consumer price index rise to be a modest 1.25 per cent. The Ifo Institute said the continued economic upturn in Switzerland was being confirmed by stronger business data.

One sign that the economy is back on track came on Monday, with the news that the number of new cars being sold in Switzerland rose by seven per cent in 1999.

The Federal Statistics Office said that 394,000 new automobiles took to the roads last year, of which 315,000 were privately-owned.

From staff and wire reports

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