- Cornelia Luchsinger, Zuercher Kantonalbank economist
Switzerland's economy unexpectedly accelerated, while exports showed signs of resilience in 2015, despite a strong Swiss Franc, migrant crisis and adverse external environment undermined the country's performance. The Swiss economy expanded 0.4% in the fourth quarter of 2015, supported by consumption expenditure from private households and the public sector, according to the State Secretariat for Economic Affairs. Quarterly estimates suggest a provisional GDP growth rate of 0.9% for 2015, compared with 1.9% in 2014.
The economic outlook for the Alpine country is clouded, as the loss of competitiveness resulting from the currency cap removal and subsequent Swiss Franc appreciation is likely to have a negative effect. The Franc spiked more than 25% versus the Euro in a single day. The economic slowdown in Switzerland during 2015 is also the result of sluggish private domestic demand which is expected to remain negative also in 2016. Household consumption is also expected to remain lacklustre as both employment and nominal wages are under pressure in the light of the appreciating Swiss Franc and as consumers become more downbeat about the economic prospects.
© Dukascopy Bank SA