The Swiss economy showed improvement in the first quarter of 2024 compared to previous quarters, according to the Swiss National Bank (SNB). The central bank noted that various economic indicators pointed to a slightly more dynamic economic activity during this period. In the final quarter of 2023, the Swiss economy saw a quarter-on-quarter growth of 0.3%.
The moderate economic growth in the first quarter was mainly driven by the service sector, while manufacturing remained stagnant. Weak global demand and challenges regarding the Swiss franc exchange rate were noted as concerns in the manufacturing sector. Companies in this sector are facing pressure on their margins due to limited pricing latitude.
The SNB, which recently reduced its key interest rate for the first time in nine years, stated that the business outlook is improving. Service sector firms are expecting continued robust growth, while manufacturing companies anticipate an increase in sales. Overall, the Swiss economy is showing signs of progress, with the service sector leading the way in driving economic growth.
