Swiss Economic Sentiment Improves, Boosted by Tourism and Services Sector

The Swiss economy continues to show signs of improvement, as economic sentiment rose for the third consecutive month in January, surpassing its medium-term average. This positive development is attributed to a more positive outlook for the tourism and services sector, according to a recent survey.

The KOF Economic Barometer, which provides insight into the future performance of the Swiss economy, increased by 3.5 points in January to reach a value of 101.5 points. This is the first time since March of last year that it has risen above the critical 100-mark.

The KOF Institute expressed optimism, stating that there are increasing indications of an impending recovery for the Swiss economy. Particularly encouraging is the improved outlook for the accommodation industry and the services sector at the beginning of this year.

Although measures for manufacturing, construction, and foreign demand also showed slight improvements, consumer demand remained relatively stable during this period. The only area that witnessed a decline in outlook was finance and insurance activity.

In contrast to these positive developments, the Swiss National Bank (SNB) cautioned that economic growth is expected to be weak in the coming quarters due to low global demand and tight financing conditions. However, the SNB’s forecast of a 0.5% to 1% expansion in the country’s economy for 2024 suggests that conditions could improve with the anticipated reduction of interest rates in the spring.

Overall, the recent boost in economic sentiment is an encouraging sign for Switzerland, as the country looks forward to potential growth and recovery in various sectors.