ZURICH (Reuters) – Switzerland’s economy likely performed slightly better during the January-March period than in the prior quarters, the Swiss National Bank said on Wednesday.
“Many economic indicators suggest that economic activity was slightly more dynamic in the first quarter of 2024 than in the preceding quarters,” the central bank said in a report.
The Swiss economy grew by 0.3% quarter-on-quarter during the final three months of 2023.
The SNB said that “moderate” economic growth during the first quarter was driven principally by the service sector, while manufacturing continued to stagnate.
“In manufacturing, persistently weak global demand remains the main concern, with companies also increasingly citing the Swiss franc exchange rate as a challenge.
“They see hardly any latitude in pricing, which means their margins are under pressure,” it added.
The bank, which cut its key interest rate for the first time in nine years last week, said the business outlook is improving, with services sector firms expecting robust growth to continue and manufacturing companies anticipating increases in sales.
(Writing by Dave Graham; editing by Matthias Williams)