KOF economic barometer points on Swiss economy to remain stable

The economy of Switzerland is likely to advance further in the nearest future, even though sanctions from Russia and sluggish growth in the Eurozone, the main Swiss trade partner, are creating some negative pressure. According to the latest report from KOF Swiss Economic Institute, in the six-month period from now economy of the country will remain stable. The respective indicator from the Institute declined slightly to 99.1 points in September, down from 99.6 a month before, but it still underlines strong domestic economic development. The Index is received, based on 219 economic indicators in monetary policy, stock market, housing, consumer confidence and manufacturing. The data for current month posted a rise in construction and production sectors, while negative contribution was provided by consumer sentiment, as people are still worried about consequences from Russian sanctions. Moreover, slow growth in the single currency area is destabilising Swiss export industry, which delivers more than 50% of all goods to the currency bloc.

Along with that, the Swiss National Bank lowered its expectations on GDP growth in the Alpine country, down from 2% to just below 1.5% in 2014. KOF Institute, however, expects the Switzerland's economy to perform a little better, as it may climb 1.8% this year, while earlier assumptions estimated a 2.1% annual growth.