Berlin: Swiss government cut down the economic growth forecasts on Tuesday (today).
Swiss government lowered the GDP growth forecasts for 2018 and 2019. However, they termed the weak demand as the key reason that resulted the economy to shrink during the 3rd quarter.
SECO or State Secretariat for Economic Affairs revealed that the economic output in 3rd quarter decreased by 0.2%. However, it is now the expected economic growth of 2.6% in 2018. On the other side, it is less than the 2.9% level it said as expected in the forecast during September.
According to sources, it now sees the growth declining to 1.5% in 2019, as compared to the previous expectations for around 2%. However, in 2020, the growth seems recovering moderately to 1.7%.
There are some negative risks prevailing such as Brexit, global trade protectionism, and the high level of international debt. In addition, the uncertainty over relationship between the European Union and Switzerland in connection with the negotiations on the framework agreement are also among some potential threats.