Switzerland’s economy is expected to have performed better in the first quarter of 2024 compared to previous quarters, according to a report from the Swiss National Bank (SNB). The central bank cited several economic indicators that showed increased dynamism during this period.
Despite moderate growth in the first quarter, manufacturing remained stagnant. Companies in this sector are facing challenges due to weak global demand and the Swiss franc exchange rate. With limited pricing flexibility, these companies are under pressure on their profit margins.
However, 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 anticipate continued strong growth, while manufacturing companies expect an increase in sales. Despite these challenges, the central bank believes that the overall economic situation is showing signs of improvement.
