9/1/2009
By Sophie Baker
The Swiss economy is set to slide into recession in 2009, predict experts at Credit Suisse.
Switzerland's real economy finally felt the full force of the financial crisis in late 2008. Previous to this, the country had held up considerably better than that of other industrialised nations, but economists fear that Switzerland's gross domestic product (GDP) could decline by 0.6 per cent in 2009, with an inflation rate of 0.7 per cent.
Credit Suisse economists have cited the economic failings in the US, Japan and other European countries which have been in recession for several quarters, and said that this recession is set to persist throughout 2009. However, they said that emerging and developing countries will continue to grow, making them the only contributors to world economic growth.
The organisation said that the export sector is the most directly impacted by the negative GDP development in Switzerland, with the increased value of the Swiss franc predicted to create additional problems for tourism in 2009. The country's export volume is expected to drop by 2.3 per cent.
The silver lining, however, is predicted to be consumer spending. The economists at Credit Suisse have forecast a growth of 1.2 per cent in 2009, which has also proven to be largely stable during previous downturns. The said that numerous factors suggest that his will happen again during the current slump, although the unemployment rate is expected to average 3.4 per cent for 2009.
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