Economic Growth in Switzerland’s Service Sector Outpaces Manufacturing During First Quarter of 2024, While Exchange Rate Challenges Persist

Swiss economy shows signs of improvement in first quarter, according to SNB | WSAU News/Talk 550 AM · 99.9 FM

Switzerland’s economy likely outperformed in the January-March period compared to the previous quarters, according to the Swiss National Bank. In a report released on Wednesday, the central bank stated that many economic indicators suggest that economic activity was slightly more dynamic during the first quarter of 2024 than in the preceding quarters.

The SNB noted that moderate economic growth during the first quarter was mainly driven by the service sector, while manufacturing continued to stagnate. Weak global demand in the manufacturing sector was highlighted as a concern, with companies facing challenges due to the Swiss franc exchange rate.

Manufacturing companies are struggling to adjust pricing to cope with exchange rate challenges, putting pressure on their margins. The SNB, which recently cut its key interest rate for the first time in nine years, mentioned that the business outlook is improving. Service sector firms expect robust growth to continue, while manufacturing companies anticipate increases in sales.

Overall, the Swiss National Bank’s report indicates a mixed picture of the economy, with different sectors experiencing varying levels of growth and challenges.

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