Swiss economic recovery is set to continue in 2006 but not all industries will benefit from the upturn, says Credit Suisse, the country's second largest bank.This content was published on January 23, 2006 - 13:02
The bank predicts that the chemical, pharmaceutical and precision instrument sectors are the most likely to grow at an above-average rate in the medium term.
It added that other sectors would be lucky to achieve average growth.
Credit Suisse economists say that the signs that 2006 will be a good year are in place and they forecast real gross domestic product growth – GDP less inflation – of 1.7 per cent.
Private consumption will increase, contributing significantly to the upswing, as will investment in fixed assets and software, alongside a consistently buoyant export sector.
One reason why not all sectors will benefit from the upturn, according to the Credit Suisse sector handbook, which was published on Monday, was their varied nature.
Sectors under pressure included agriculture, textiles and construction.
The textile industry in particular was a victim of globalisation, which had led to the outsourcing of production to countries where costs were considerably cheaper than at home.
For chemicals and pharmaceuticals, a global increase in healthcare spending will make export growth for this year rise above the Swiss average. This would be due to Switzerland's ever-growing ageing population.
However, pressure on costs will remain extremely high, as the competition for these industries will become increasingly international.
Another sector predicted to do well is luxury watchmaking, as it profits from the global growth in luxury consumer goods.
Other industries likely to shine in 2006 include communications (particularly telecoms), information technology, corporate service and other miscellaneous services, such as cosmetic institutes and fitness centres.
The Credit Suisse sector handbook looks at 32 leading industries in Switzerland.
It assesses the risks, opportunities and growth potential for these sectors.
The handbook is produced by the firm's economic research unit.
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