Top economists confirm economic growth forecasts

Leading economists in Switzerland on Friday forecast that the economy will grow next year, albeit at a much slower pace than this year.

The 26 experts estimate that GDP will grow by 3.1 per cent this year and 2.3 per cent in 2001.

The group, known as the Business Economists’ Consensus, is slightly more optimistic than three months ago when its members were forecasting a three per cent growth of the economy this year.

They believe that the slowdown next year will be caused by a weaker growth in exports and investment.

The economists say that despite the rise in oil prices, there is no acute danger of inflation. They are forecasting an inflation rate of 1.8 per cent for both this year and next.

Their forecasts for the labour market are also favourable. They believe the unemployment rate in Switzerland will be two per cent this year, falling to 1.8 per cent in 2001.

As far as exchange rates are concerned, the economists feel the United States dollar will weaken considerably to SFr1.61 in a year’s time.

They also expect the Swiss Performance Index to increase by five per cent by the end of September next year.

swissinfo with agencies