Swiss Economy Bounces Back in First Quarter of 2024, Manufacturing Sector Remains Pressured

Swiss economy expected to show modest improvement in first quarter, according to SNB

Switzerland’s economy is showing signs of improvement in the first quarter of 2024, according to a report from the Swiss National Bank (SNB). Despite challenges faced by the manufacturing sector, many economic indicators showed increased dynamism during this period.

In the last quarter of 2023, the Swiss economy saw a 0.3% quarter-on-quarter growth. However, companies in the manufacturing sector are facing pressure on their profit margins due to weak global demand and the Swiss franc exchange rate. With limited pricing flexibility, these companies are finding it difficult to remain competitive in an increasingly challenging market.

The SNB also mentioned that its decision to cut interest rates for the first time in nine years has helped improve business outlook. Service sector firms are anticipating continued strong growth while manufacturing companies expect an increase in sales. The central bank believes that despite these challenges, the overall economic situation is showing signs of improvement.

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