Growing confidence in the Swiss economy
Published: Wednesday, Mar 27th 2024, 11:11
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Financial analysts' confidence in the Swiss economy continues to grow. Following the sharp rise in February, the recovery has now been confirmed with a further positive development of the indicator in March.
The UBS CFA indicator published by UBS rose again slightly by 1.3 points to 11.5 points in March, according to a statement on Wednesday. In the previous month, the index had risen sharply and turned positive for the first time in two years. According to the experts, increasing confidence in the economy is now evident across the board.
And the outlook has not only improved for Switzerland, but also for the other regions, particularly the eurozone, the report continues. In addition to the outlook, the current situation for Switzerland and the other regions has also been assessed more positively.
Inflation expectations and monetary policy
According to the analysts surveyed, inflation is also likely to fall in all regions. Meanwhile, long-term inflation expectations for Switzerland over the next five years have leveled off at 1.4% among the analysts. Almost 80 percent of those surveyed expect inflation to remain within the SNB's target corridor. Six months ago, only 28 percent expected this.
Analysts are relaxed about the upcoming resignation of SNB Chairman Thomas Jordan. Almost 90 percent of survey participants assume that his resignation will have no consequences for the SNB's monetary policy. However, almost 40 percent are of the opinion that enlarging the Governing Board to five members would have advantages.
The increasing optimism is not only reflected in the economic picture, but also in the financial market expectations. A decline in interest rates and a continuation of the upward trend on the stock markets are expected at both the short and long end. In the long-term GDP forecast for Switzerland for the next five years, half of the experts expect growth of between 1 and 2 percent.
The survey was conducted between March 14 and 20 and 36 analysts took part.
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