In the first quarter of 2024, Switzerland’s economy is expected to perform better than previous quarters, according to a report from the Swiss National Bank. The central bank noted that many economic indicators suggest slightly more dynamic economic activity during this period.
Despite moderate growth in the first quarter, manufacturing continued to stagnate. Weak global demand and challenges related to the Swiss franc exchange rate were identified as major concerns for manufacturers. Companies in the manufacturing sector are struggling 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, reflects a focus on improving the business outlook. The services sector firms are anticipating robust growth to continue, while manufacturing companies are expecting increased sales. The central bank’s report suggests a cautiously optimistic view of Switzerland’s economic performance in the first quarter of 2024.
