The Swiss economy is forecast to log a moderate growth this year as weakening global activity and considerable uncertainty is weighing on foreign trade and investment, the State Secretariat for Economic Affairs said Thursday.
In the summer forecast, the expert group of SECO upgraded the 2019 growth projection to 1.2 percent from 1.1 percent. The outlook for 2020 was retained at 1.7 percent.
If the trade situation were to intensify further, the global economy, and thus the Swiss economy, would be expected to cool off more strongly, particularly if the EU and Germany were to be significantly affected, the agency cautioned.
However, the government expects the labor market situation this year to remain favorable. The unemployment rate is seen at 2.4 percent in 2019 and 2.6 percent next year.
The expert group raised inflation forecast for 2019 to 0.6 percent from 0.4 percent, while the projection for 2020 was maintained at 0.6 percent.