Swiss cut 2012 growth forecast to 0.9%
The Swiss government on Tuesday cut its growth forecast for 2012 to 0.9 percent, citing a worsening world economic environment and the strength of the franc.
"The federal government's expert group are ... projecting GDP growth in 2012 to be 0.9 percent, after 1.9 percent in 2011," compared to a previous estimate of 1.5 percent for 2012 and 2.1 percent for 2011, the economy ministry said in a press release.
"An important factor is the unfavourable foreign trade conditions such as the significant slowing of the world economy along with the high valuation of the Swiss franc even after the introduction of a ceiling to the euro exchange rate," it said.
"The negative impact on exports and company investment could sharply slow economic growth in Switzerland over the short term," it said.
The ministry also warned that unemployment in the country may rise "in the coming years," the first time since 2009.
"Another risk for generating a worse economic outlook, with more recessionary tendencies, might be further upheavals on the financial market resulting from further critical developments in the European debt crisis," it added.
© 2011 AFP