The Swiss National Bank (SNB) recently stated that Switzerland’s economy likely experienced a slight improvement during the first quarter of 2024, compared to previous quarters. This was driven by the service sector, which showed continued robust growth, while manufacturing continued to show stagnation.
In terms of manufacturing, the SNB expressed concern over weak global demand and the challenges posed by the Swiss franc exchange rate. Companies in this sector are facing pressure on margins due to limited pricing flexibility. Despite these challenges, service sector firms are expecting continued growth, while manufacturing companies anticipate an increase in sales.
Last week, the central bank cut its key interest rate for the first time in nine years. The SNB is closely monitoring key economic indicators to assess the country’s economic performance and ensure sustainable economic growth for Switzerland’s future.
