"The international economic slowdown has also reached Switzerland"
- Economists at the State Secretariat for Economics
The Swiss government has downgraded its economic outlook for 2012 and 2013, as worldwide economic slowdown had intensified. Government's experts cut their growth forecast to 1% for 2012, down from their previous 1.4% estimate, while a slight pickup to 1.4% is expected in 2013.
"The international economic slowdown has also reached Switzerland," the State Secretariat for Economics (Seco) experts said. "However, the group does not foresee a marked recession in Switzerland thanks to the robust domestic economy and the exchange rate floor against the euro."
"Nevertheless, it is still too early to state that the euro crisis has been resolved until there is any clear success with the reforms in the crisis countries, leading to greater stability in government finances and improved economic competitiveness," they added.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies edged higher 0.36 per cent to 6,513.22. The broader Swiss Performance Index climbed 0.36 per cent to 6,038.72.
© Dukascopy Bank SA