Raiffeisen Bank’s chief economist, Fredy Hasenmaile, has issued a warning about the challenging situation facing the Swiss economy. He predicts that the country’s economic growth will be sluggish in the coming year, citing the persistent strength of the Swiss franc as the main factor. This is particularly impacting the traditional manufacturing industry and exacerbating the ongoing trend of deindustrialization in Switzerland. Hasenmaile, who took over from his predecessor Martin Neff, has assumed the role of sounding the alarm about the decline of the country’s manufacturing sector. Despite this gloomy outlook, there are some positive developments. Inflation is expected to have peaked, with the latest statistics from the Federal Statistical Office falling below expectations. While administered prices such as electricity and rent are projected to rise, this is not expected to necessitate further interest rate hikes by the Swiss National Bank. However, cautious wage increases and higher health insurance premiums may lead to a decrease in purchasing power for many households, which could also dampen inflation. Hasenmaile anticipates that the Swiss National Bank will have more flexibility with interest rates due to weaker inflation and will closely monitor the strength of the Swiss franc and interest rate differentials.

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Information	Details
Geography	Europe
Countries	🇨🇭 🇩🇪 🇫🇷
Sentiment	neutral
Relevance Score	1
People	Fredy Hasenmaile, Martin Neff
Companies	Bundesamt für Statistik, Raiffeisen, Europäische Zentralbank (EZB), Schweizerische Nationalbank (SNB), Credit Suisse
Currencies	Swiss Franc
Securities	None