21 september 2022 | Macroeconomics | CEOs

Energy risks and inflation caused cuts in Switzerland's growth forecasts

The growing risks connected with the "tight energy situation and the sharp rise in prices" have greatly influenced the opinion of the Switzerland government. Now the forecast for economic growth is decreased.

With this forecast, the state Secretariat of Economic Affairs (SECO) expects the economy to grow at 2,0% this year, rather than the 2,6% forecast in June. And in 2023, it predicts that the economy will grow by 1.1%, compared to the previous expectation of 1.9% growth.

"After a positive first half of 2022, the perspective of the Switzerland economy is getting worse," SECO said. "The tight energy situation and sharp price increases are negatively affecting the economic prospects, especially in Europe".

SECO's expectations for inflation have increased. Previously, consumer prices were predicted to rise by 2.5% in 2022, but now 3% is expected. The inflation forecast for 2023 was 1.4% growth, but now it is expected to grow by 2.3%.

According to SECO, the expected unemployment rate in Switzerland this year is 2.2%, and next year - 2.3%. This beneficial unemployment situation will continue to support domestic demand.

Earlier, it was expected that the demand for Switzerland's products from the eurozone, the U.S. and China would be higher. The forecast now suggests a weakening of international demand.

Central banks around the world are fighting against inflation by increasing interest rates. For SECO, they have also complicated the situations of the global debt and financial markets.

Latest news
Strengthening dollar threatens the profits of technology companies

Shares of technology companies are now experiencing their worst period in decades.

29 minutes ago
United Nations agency calls for the Fed to slow down the pace of rate increases

The Fed’s aggressive tightening of its policy has resulted in the U.S. dollar getting to record highs in several decades and crushing other currencies.

36 minutes ago
US housing market will face a serious slowdown

The sharp drop in USR home prices was the result of the FRS fights against inflation.

48 minutes ago
ABI Research named Verizon Connect as innovation leader

Verizon Connect scored highest in innovation in the 2022 ranking for the top commercial telematics provider of ABI Research, which was released in September. Verizon Connect was already named a leader in 2020.

1 hour ago
In August, the number of vacancies in the U.S. fell by more than 1 million

The tight U.S. labor market began to show signs of easing in August.

1 hour ago

Subscribe to our newsletter and stay up to date with all the news!