Swiss entrepreneurs are increasingly worried about economy

Noam Stiekema

The expectations of the Swiss business are moving on negative territory in September for the first time since January last year, when the market is becoming more pessimistic about the impact of geopolitical tensions on growth in the euro area – the main export market of the Alpine country. The index for expectations of investors […]

Swiss

SwissThe expectations of the Swiss business are moving on negative territory in September for the first time since January last year, when the market is becoming more pessimistic about the impact of geopolitical tensions on growth in the euro area – the main export market of the Alpine country. The index for expectations of investors and analysts fell to -7.7 points, which is the lowest level since December 2012. In August was reported at 2.5 points. The negative result indicates that more participants expect the economic outlook to deteriorate rather than improve.

Equivalent measure for Germany ZEW – the number one market for Swiss goods fell for the ninth consecutive month in September, according to data released Tuesday. The prospects for the largest economy in Europe weakened amid doubts about growth in the euro area and the impact of sanctions against Russia.

The assessment of the current state of the Swiss economy also weakened in recent months, despite of the good Marketing and Sales Recruitment, the index dropped to 25.6 points this month by 45 points in August. However, the proportion of analysts who expect the economy to grow by 1.5-2% in the next three to five years is stable – about 44%. Later this week the Swiss central bank will hold its traditional monthly meeting, during which will review the monetary policy. Institution is expected to lower its forecast for growth to about 2% this year. The analysts expect it to keep interest rates near zero, and reiterated his pledge to maintain a minimum threshold of 1.20 CHF per EUR imposed in September 2011.

A grim economic outlook has forced more than 90% of the analysts expect to see stability in the short-term interest rates in Switzerland over the next six months, especially after the European Central Bank shrank again their rates earlier this month.

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