The Swiss economy is expected to grow 2.6% in 2022, the government announced today, and became the last to downgrade growth estimates due to the war in Ukraine and uncertainty in China.
The slowdown from the previous forecast of 2.8% growth in March was also due to rising food and energy prices, according to the State Secretariat for Economic Affairs (SECO).
SECO also downgraded its estimates for GDP growth in 2023 to 1.9% from the 2% previously expected.
All elements are customized without the impact of sporting events.
“The Swiss economy has made a solid start to the year, but the outlook for the international environment has waned. In particular, the global economy is threatened by war in Ukraine and developments in China,” SECO said.
“The war in Ukraine could have a more serious impact than previously expected,” he added.
“Global market prices have risen sharply for basic Russian and Ukrainian exports, such as energy resources and some staple foods and feed,” he said.
“The resulting inflationary pressures are restricting demand to large trading partners, with adverse effects on exposed sectors of the Swiss economy,” SECO said.
The OECD last week cut global growth estimates to 3% this year, well below the 4.5% expected in December.
Source: Capital
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