- Thomas Jordan, SNB President
Real turnover in the Swiss retail sector dropped unexpectedly in November, adding to signs that the Alpine country continues to falter amid fragile recovery in the Euro zone and slowdown in emerging markets, particularly in China. Swiss sales volumes declined 2.1% on an annual basis in November, following a revised 1.2% decrease a month earlier. When measured on a monthly basis, seasonally adjusted turnover in the retail sector dropped by 0.8% in the reported month compared with October.
Thomas Jordan, the Swiss National Bank President, predicts that the Swiss Franc would remain at its current level or slightly weaken in 2016. Jordan also hinted that the negative interest rates introduced last January may stay until the end of the year, hoping that negative rates will help to combat an overvalued Franc, which is undermining exports to the Euro zone. SNB President admitted, however, that the Fed's decision to hike interest rates in December had eased the situation, as the US Dollar gained ground versus the Swiss Franc. Overall, for 2015, the SNB has said it expects the country's gross domestic product to have climbed just under 1%, compared with 2% in 2014. The central bank predicts economic output to rise by 1.5% in 2016, although it will depend on the Franc's strength and developments in the global economy.
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