"Even though the distorting effects from the rise in the Swiss franc are fading out, we're still waiting for positive inflation rates"
- VP Bank economist Bernd Hartmann
Economic expectations for Switzerland improved for the fourth consecutive month, indicating that investors and analysts are getting less anxious over future economic outlook. A gauge of economic expectations rose from -15.5 points recorded in December to -6.9 points in January, reaching the highest level since May, the Centre for European Economic Research (ZEW) said on Wednesday. At the same time, the assessments of the current economic environment in the country improved by 9.4 points reaching a level of 16 points in January compared with the reading of -14.7 points in the previous month.
"Even though the distorting effects from the rise in the Swiss franc are fading out, we're still waiting for positive inflation rates. We are, however, expecting inflation rates to turn positive in coming months," VP Bank economist Bernd Hartmann said. "Giving up the exchange rate floor is not on the agenda (of the SNB) so there is no inflation pressure from the exchange rates."
"It is doubtful that Switzerland is already on a sustainable recovery path. The economic problems in the eurozone are having an increasingly strong impact on the Swiss economy," he added.
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