Switzerland’s economy is likely to grow less than previously estimated this year due to the global economic weakness and the structural adjustments in the region, the KOF Swiss Economic Institute said Wednesday.
According to Spring Forecast, the economy will grow 1 percent in 2016 and, in line with the global recovery, by 2 percent in 2017.
The think tank downgraded its 2016 projection from 1.1 percent, while leaving the 2017 outlook almost unchanged.
The State Secretariat for Economic Affairs earlier projected 1.4 percent growth this year and 1.8 percent next year.
The KOF expects prices to decline further by 0.7 percent in 2016 instead of 0.6 percent estimated previously. The forecast for 2017 was lowered to 0.1 percent from 0.2 percent.
It is projected that the adjustments to the current Swiss franc exchange rate will continue, resulting in lower prices owing to productivity gains, KOF said. Real wages are forecast to climb 1.1 percent in 2016.
The KOF is forecasting an unemployment rate as reported by the SECO of 3.5 percent this year and 3.6 percent next year.
The material has been provided by InstaForex Company – www.instaforex.com