In the first quarter of 2024, Switzerland’s economy likely performed better than previous quarters, according to the Swiss National Bank (SNB). The central bank reported that many economic indicators showed increased dynamism during this period.
The moderate economic growth in the first quarter was primarily driven by the service sector, which experienced continued strong growth. However, manufacturing remained stagnant, with companies facing challenges such as weak global demand and a high Swiss franc exchange rate. With limited pricing flexibility, these companies are experiencing pressure on their profit margins.
Following its decision to cut interest rates for the first time in nine years, the SNB also mentioned an improving business outlook. Service sector firms expect continued strong growth, while manufacturing companies anticipate an increase in sales. Despite these challenges faced by the manufacturing sector, the overall economic situation is showing signs of improvement due to the improved business outlook.
