June 13, 2024

Swiss Economy Rebounds in Q1 2024, Despite Challenges in Manufacturing Sector

1 min read
Swiss economy expected to show modest improvement in first quarter, according to SNB

In the first quarter of 2024, Switzerland’s economy likely performed better than in previous quarters, according to the Swiss National Bank (SNB). Many economic indicators showed increased dynamism during this period.

The SNB stated that the moderate economic growth was primarily driven by the service sector, while manufacturing remained stagnant. Companies in the manufacturing sector are facing challenges due to weak global demand and the Swiss franc exchange rate. With limited pricing flexibility, these companies are experiencing pressure on their profit margins.

Despite these challenges, the SNB mentioned an improving business outlook following its decision to cut interest rates for the first time in nine years. Service sector firms expect continued strong growth, while manufacturing companies anticipate an increase in sales. The central bank believes that the overall economic situation is showing signs of improvement despite the challenges faced by the manufacturing sector.

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