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Swiss cut growth forecast

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Swiss cut growth forecast

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Switzerland has cut its growth forecast for next year due to the worsening European economic situation.

It sees economic growth of 0.5 percent. The previous forecast — made back in September — was for 0.9 percent expansion.

However it does not expected a deep downturn as long as the eurozone crisis does not get worse, which would hit exports.

The eurozone is Switzerland’s biggest trading partner.

Swiss exporters have already suffered because of the high value of the Swiss franc which is bought by investors as a ‘safe haven’ currency.

The State Secretariat for Economics predicts economic growth will rebound to 1.9 percent in 2013. GDP will expand 1.8 percent this year, from 2.7 percent in 2010, it said.