UBS economists see less economic risk

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Despite low risks, augurs leave their GDP growth forecasts in Switzerland at +0.8 percent for 2023 and +1.3 percent for 2024, augurs said on Tuesday. Overall, economic risks will decrease.

According to the communique, China will support the global economy after the end of the pandemic measures and at the same time, supply problems in the energy sector in Europe are unlikely. On the other hand, the consequences of the sharp increase in interest rates in the USA will be a burden on the global economy.

As for inflation, UBS economists did not change their 2023 forecast (+2.5%). However, for 2024, a value of 1.7 percent is now projected after 1.4 percent due to the more persistent core inflation. However, experts expect the Central Bank’s interest rates to rise to only 1.75 percent in June. Forecasters suspect that, thanks to “only moderate runoff effects”, the SNB will be able to hold its key interest rate steady in the second half.

The shortage of skilled workers remains a structural risk for the Swiss economy. More than half of companies currently have difficulty filling vacancies or are unable to fill vacancies at all, as a survey by the bank showed.

(SDA)

Source :Blick