The main reason for the lowered prospects is the war in Ukraine, which is affecting the global economy as well as hampering Swiss exports and domestic demand, the OECD said on Tuesday.
For 2023, the group forecasts Swiss growth of 0.6%, down from 1.4% previously estimated. In 2024, the OECD says, expansion will recover a bit to +1.4%. The economists expect that Swiss consumers will gradually begin to reduce their extremely high savings rate and start spending more.
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Explainer: how Switzerland is dealing with rising prices
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Inflation is comparatively moderate in Switzerland, but rising energy and food prices are putting a strain on small budgets.
Rising energy prices will also keep inflation well above the Swiss National Bank’s (SNB) target range: the OECD expects a rate of 2.9% for 2022, with only a slight drop to 2.5% in 2024.
The OECD also states that the SNB will therefore have to further tighten its monetary policy. In September this year, the Swiss central bank raised interest rates to positive territory for the first time in seven years.
Hundreds of Saint Bernard dogs gather in Switzerland for world competition
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Over a hundred Saint Bernards have descended on Martigny, in canton Valais to kick off the World Union of Saint Bernard Clubs competition.
Giacometti lamp tops million-franc mark in Geneva auction
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A “Tête de femme” floor lamp by Swiss artist Alberto Giacometti topped the million-franc mark at a Piguet auction in Geneva.
UN rights expert criticises Swiss pressure in trade negotiations
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The UN Special Rapporteur on the Right to Food has accused EFTA countries of pressuring Thailand and Malaysia in trade deals.
Switzerland gives CHF60 million to Ukraine for digitalisation
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The Swiss government has agreed to give war-ravaged Ukraine CHF58.7 million ($65.5 million) towards the digitalisation of its public administration.
Three people arrested in Switzerland in international drug gang crackdown
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International co-operation led to 17 people being arrested in six European countries and large quantities of drugs also being seized.
Federal Council banks on R&D to strengthen Swiss solar industry
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The Swiss government opposes the deployment of special industrial policy or measures to help boost the domestic photovoltaic industry.
Swiss president envisions follow-ups to peace summit
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Swiss President Viola Amherd hopes the first Ukraine peace conference will build trust and seek solutions for safety and security issues.
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With use of drugs such as crack on the rise, the government wants to invest in additional facilities for people suffering from addiction.
Alleged French spy tied to Swiss NGO arrested in Russia
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The man, who Russia has claimed was trying to obtain information about the Russian military, was confirmed to be a French citizen working for a Geneva-based NGO.
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Plaintiffs in a class-action lawsuit are claiming that Switzerland prioritised national interest over its legal obligation to bondholders.
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Too soon to say inflation has peaked, says SNB boss
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The president of the Swiss National Bank (SNB) says the inflation outlook is more uncertain than normal and it is premature to say prices have peaked.
SNB board member says more rate hikes may be needed
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The Swiss National Bank (SNB) may raise interest rates again to fight Swiss inflation, says governing board member Andrea Maechler.
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If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.