Swiss State Secretariat for Economic Affairs downgraded 2019 growth forecasts and warned that the outlook has become “gloomier”. And in the coming years, “Swiss economy is set to brighten only gradually.” GDP growth is projected to be at 0.8% for 2019, way below June forecasts of 1.2%. For 2020, though, GDP growth forecast was kept unchanged at 1.7%.

Exports growth will be below-average in 2019 “as signs of a weak second half of 2019 for important trade partner Germany are increasing, among other factors.” Domestic outlook has come gloomier too as “companies are set to invest only hesitantly in equipment in the near future”. Consumer is expected to continue moderate growth.

Globally, downside risks “clearly predominate”, with new US-China tariffs, Brexit and fragile situation in some emerging economies like Argentina. “Upward pressure on the Swiss franc could also increase if further risks with considerable implications materialize, with corresponding dampening effects on the export economy. ”

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