Switzerland’s Economic Recovery Driven by Service Sector, SNB Says

Swiss economy shows signs of improvement in first quarter, according to SNB | WTAQ News Talk | 97.5 FM · 1360 AM

In the first quarter of 2024, Switzerland’s economy is showing signs of improvement compared to previous quarters. This is according to a report by the Swiss National Bank (SNB), which states that many economic indicators are pointing towards slightly more dynamic economic activity during this period.

The SNB also reports that the Swiss economy grew by 0.3% quarter-on-quarter in the final months of 2023. While manufacturing continued to show stagnation, it was the service sector that drove the moderate economic growth in the first quarter. The SNB expressed concern over weak global demand and challenges posed by the Swiss franc exchange rate, which are putting pressure on margins for companies in the manufacturing sector.

Despite these challenges, there is an improving business outlook for both service sector firms and manufacturing companies. Last week, the central bank cut its key interest rate for the first time in nine years, signaling its commitment to supporting economic growth.

Overall, Switzerland’s economy is showing signs of improvement with service sector leading way in driving economic growth. The SNB closely monitoring key economic indicators to assess country’s performance.

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