GDP of Switzerland revised forecast to lower value

Hi all,
Below are information from SECCO. that show that the GDP of Switzerland is being hit by several aspects.

Switzerland’s gross domestic product growth forecast was revised downward in the light of the steady, albeit weak, economic recovery in Europe and the continued positive expansion of domestic demand in the country, a release from the State Secretariat for Economic Affairs showed.

The Federal Government’s Expert Group lowered the GDP growth forecast for this year to 0.8 percent from 0.9 percent previously estimated in March.

Growth expectations for next year was cut to 1.6 percent from 1.8 percent earlier. The economic slowdown of the Swiss economy was confirmed at the beginning of the year.

The expert group cited weak progression of economic activity observed in the first quarter of 2015 and the downward revision of certain exogenous assumptions, particularly growth forecast in the United States for 2015, for the downward revision of GDP growth.

Inflation forecasts were left unchanged, with prices expected to decline 1 percent this year and rise 0.3 percent in 2016. The group said the downward trend of consumer prices continued in May as the appreciation of the Swiss franc had an effect on several prices, including producer, import, export and consumer prices.

The unemployment rate forecast for this year was maintained at 3.3 percent, while the 2016 forecast was revised up to 3.5 percent from 3.4 percent estimated earlier. The increase in unemployment was apparently currently among German-speaking Switzerland more than French-speaking Switzerland or Ticino.

And now what will be the effect for us, in terms of portfolio value, dividend distribution, difficult to predict but it will probably not provide the same returns we saw for the last couple of years. Hopefully our actual diversification is the right one to face this challenge.

Cheers,

RA50

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