Swiss economy shrinks by 0.05 pct in November

1st December 2008, Comments 0 comments

A projection by KOF research institute says the contraction marks the first slowdown for Switzerland’s economy since the start of the global economic crisis.

1 December 2008

GENEVA – Switzerland's economy contracted by 0.05 percent in November, marking the first slowdown since the beginning of the global economic crisis, the KOF research institute said on Friday.

The economy is expected to show zero growth in the coming months, while October's growth rate was revised down to 0.28 percent from 0.35 percent, the KOF added.

The KOF based its projections on a monthly survey of 4,200 Swiss businesses.

In September, the KOF forecasted that Switzerland would post two quarters running - the fourth quarter of 2008 and first of 2009 - of negative growth, but that the worst should be over next year.

Earlier in November, the State Secretariat for Economic Affairs (Seco) announced that it would inject about CHF 890 million into the country's economy to help stave off the effects of the global financial crisis.

The secretariat's employment unit head also said that unemployment here could soar by 50 percent if 2009 growth falls below one percent.

[AFP / Expatica]

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