World trade will shrink next year: Swiss economy will only grow when the “handbrake is pulled”

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Economiesuisse economists expect real gross domestic product (GDP) in Switzerland to grow by 1.0 percent next year and 1.1 percent in 2024, the association said on Wednesday. In 2022, GDP increased even more strongly, at 2.6 percent. As a result, it is said that the unemployment rate will not increase significantly and inflation will probably remain around two percent.

Economists at Economiesuisse are in line with the expectations of other experts with their assumptions. Most analysts currently expect growth of around 1 percent.

Economiesuisse justifies cautious economic forecasts for Switzerland by saying that the global economy is growing very slowly and world trade is even now contracting. Some countries are even entering recession. Inflation, geopolitical uncertainties, high interest rates and the strong franc have reduced demand for Swiss goods and services abroad, such as in Germany or China.

MEM and technology industries are having a hard time

According to Economiesuisse, the pharmaceutical, medical technology, watch and food industries still have a positive outlook on the future. However, in the textile industry and the construction industry, light and shadow were used alternately. A clear decline is expected in the mechanical, electrical and metal industries, as well as in related technology sectors, due to order density. The chemical industry is also facing a difficult year.

When it comes to services, Economiesuisse expects a decline in value creation only in a few sectors, such as printing and publishing or telecommunications. On the other hand, more or less strong growth is expected in the banking, insurance, consultancy, catering, hotel and tourism, transportation, health, IT and retail sectors in 2024. (SDA/kae)

Source :Blick