Fledgling Swiss economy to pick up in 2016: report

Overall GDP growth in Switzerland for 2015 is expected to reach 0.9 percent, up 0.1 percent compared to the June forecast, the Swiss State Secretariat for Economic Affairs (SECO) indicated on Thursday.

This minimal rise highlights the repercussions of the strong Swiss Franc on the confederation's economy, with predictions indicating that Swiss GDP growth will be below par up to the end of the year despite recent easing in the exchange rate situation.

SECO reported that the economy should observe a more palpable economic growth in 2016, with GDP growth forecast to reach 1.5 percent next year.

Much of Switzerland's economic outlook relies on sustained global economic growth, with particular importance placed on EU recovery.

So far the world has displayed mixed economic outlooks, with many developed markets witnessing moderate growth and recovery while a number of developing countries are experiencing a slowdown.

While Swiss GDP growth in the first six months of this year almost came to a standstill with impetuses for growth stemming largely from domestic demand, SECO explained that Swiss Franc appreciation further compounded negative trends in the exports of goods and services.

The Federal Government's Expert Group on Economic Forecasts stated that weaker export performances compared to imports in 2015 will contribute negatively to growth, while predicting that the balance of trade is expected to enhance GDP growth next year. Enditem