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Subject

Switzerland economic performance.

Significance

Swiss GDP growth flourished over the one-and-a-half-year period through mid-2018, despite increased uncertainty and manufacturing slowdown in both Europe and Asia. Growth has been boosted by net trade and investment. Such strong momentum was interrupted in the third quarter, when real GDP contracted by 0.2% quarter-on-quarter. Meanwhile, other European countries, such as Germany and Italy, experienced a downturn.

Impacts

The trade surplus peaked in 2013 at 12.1% of GDP and should fall to 7.0% in 2022, as the franc strengthens.

Inflation will average 0.9% in 2018 and 0.7% in 2019, as the economy slows and the oil price is down.

If Brexit happens, Switzerland and the United Kingdom will have to sign a new trade deal.

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