Economiesuisse expects only slight growth in 2023

The association announced at a press conference on Monday that Swiss gross domestic product (GDP) is likely to see weak growth of 0.6 percent in 2023. While the main pillars of growth will be private consumption and equipment investments, construction, public consumption and foreign trade are likely to affect growth negatively.

According to the assessment, the shortage of skilled workers, high energy prices and price increases for manufacturing services will continue, with only gradually decreasing supply bottlenecks also negatively impacting economic growth. The latter is still a problem for almost half of companies, according to a survey by the association.

However, the economic braking effect does not affect all sectors equally. The signs pointing to growth in the value-added goods export sectors of the pharmaceutical, medical technology and watchmaking sectors continue. On the other hand, the development in the chemical sector was mixed, where the scope of business and export markets would decide whether the growth would be positive or negative.

Metal, electricity and machinery industries and the textile industry predict a decrease in added value for 2023. Even though the construction sector continues at a “good level” in value creation, a negative development can be expected.

Meanwhile, the association does not see everything clearly about the increase in prices. Inflation will not fall significantly in 2023 and will remain above the Swiss National Bank’s (SNB) target range of around 2.7 percent. On the other hand, the job market should remain in good shape. The unemployment rate increases only slightly on average throughout the year.

However, the economy is not so sure about its forecasts. The ice is thin – they warn that the risks to the economic downside are high.

(SDA)