According to the Swiss National Bank, Switzerland’s economy likely performed better in the first quarter of 2024 compared to previous quarters. The central bank mentioned in a report that many economic indicators point to slightly more dynamic economic activity during this period. In the last quarter of 2023, the Swiss economy grew by 0.3% quarter-on-quarter.
Weak global demand and challenges related to the Swiss franc exchange rate were identified as concern areas for manufacturers, which continued to stagnate. The SNB noted that moderate economic growth in the first quarter was driven mainly by the service sector, while manufacturing struggled with limited pricing flexibility, putting pressure on their profit margins.
The recent cut in key interest rates by the SNB, the first in nine years, indicates a focus on improving the business outlook. Companies in the services sector are expecting robust growth to continue, while manufacturing companies are anticipating increased sales. The central bank’s report suggests a cautiously optimistic view of Switzerland’s economic performance in the first quarter of 2024.
In conclusion, Switzerland’s economy likely performed better in Q1 2024 compared to previous quarters due to slightly more dynamic economic activity according to SNB. Moderate economic growth was driven mainly by service sector while manufacturing stagnated due to weak global demand and challenges related to Swiss franc exchange rate. The cut in key interest rates shows a focus on improving business outlook and companies are anticipating robust growth and increased sales accordingly.
