"Further increasing exports and consequently a broader based economic expansion are expected, since domestic economy, which has held up well since the financial crisis, should remain robust"
- Economists at the State Secretariat for Economics
The Alpine country is likely to build up steam in 2014, as UBS consumption indicator improved in November, supporting more positive outlook from the government. A gauge of private consumption rose to 1.43 last month from 1.26 in October, as buoyant Christmas trade boosted sentiment in the retail sector, the UBS company said Monday. At the same time the indicator of business conditions in the retail sector, jumped to 6 in November, recovering from –1.5 a month earlier. The main downside pressure, however, came from the number of new car registration, as new registrations plunged 7% over the corresponding period.
The data confirms the earlier assessment made by the Swiss government, saying they expect a stronger economic upturn over the next two years. This year the economy is likely to post a 1.9% growth, while the outlook for 2014 stands for 2.3%. Moreover, the economy will accelerate to 2.7% in 2015.
This year the SNB had little work, as the Franc mostly hovered around 1.22 versus the single currency, as situation in the 17-nation bloc improved significantly. While both Switzerland and the Eurozone are likely to strengthen over the next 12 months, global headwinds may derail the recovery, hence, boosting the risk appetite for the Swiss Franc, adding more pressure on the SNB to defend is 1.20 cap.
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