OECD raises GDP forecast for Switzerland
Published: Thursday, May 2nd 2024, 09:43
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According to the OECD economic organization, the Swiss economy is likely to grow slightly faster in 2024 than previously assumed. Meanwhile, the forecast for 2025 has been confirmed.
The Organization for Economic Co-operation and Development (OECD) is now forecasting GDP growth of 1.1% for Switzerland in 2024 (previously: 0.9%), according to a report published on Thursday. The forecast for 2025, when the Swiss economy is expected to pick up speed at 1.4%, has been confirmed.
Overall, the mood in the economy is currently described as "rather poor". Weaker global trade and restrictive monetary conditions are weighing on private investment and exports, the OECD writes in the press release. A further weakening of foreign demand, supply disruptions or a drastic correction in real estate prices are the biggest downside risks for the economy.
Lower inflation forecast
Meanwhile, inflation is expected to ease further. Specifically, the OECD predicts an average value of 1.5% for 2024, compared to 1.9% in the last forecast. For 2025, the forecast for Switzerland remains unchanged at 1.4%.
Overall inflation in Switzerland has been within the Swiss National Bank's (SNB) target range of 0% to 2% since June 2023. Longer-term inflation expectations also remain within this range. However, monetary policy must remain restrictive to ensure that inflation remains this low in the long term.
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