Arab Today, arab today swiss economy defies strong franc in q4
Last Updated : GMT 06:12:46
Arab Today, arab today
Arab Today, arab today

Swiss economy defies strong franc in Q4

Arab Today, arab today

Arab Today, arab today Swiss economy defies strong franc in Q4

Zurich - Arabstoday

Switzerland may escape a recession caused by the strong franc, after data showed the economy unexpectedly grew in the fourth quarter and leading indicators painted a rosier picture, easing pressure on the central bank to do more to shield the economy. Gross domestic product grew 0.1 per cent in the fourth quarter compared to the previous quarter, the State Secretariat for Economics (SECO) said on Thursday. It grew 1.3 per cent from a year earlier. Analysts in a poll had expected a contraction of 0.2 per cent on the quarter and growth of 0.9 per cent on the year. “The economy may not be as bad off as many pessimists had predicted,” said Swissquote analyst Peter Rosenstreich. “Despite the strong franc there is solid demand for Swiss products and in aggregate growth is bumping along.” Since the onset of the global financial crisis, investors seeking a safe haven have been buying the franc, prompting the Swiss National Bank (SNB) to cap its value at 1.20 per euro last September, citing the risk of deflation and recession. A recession is defined as two consecutive quarters of negative quarterly growth. Manufacturing sector (PMI) data for February also beat expectations, data showed on Thursday, indicating the economy may bottoming out. Manufacturing activity fell only very slightly last month after shrinking for five consecutive months. The data followed February’s KOF economic barometer, which rose for the first time in nearly a year.[ID:nL5E8DT1HM] “This is a slightly favorable surprise and confirms that Switzerland is experiencing an economic turnaround, albeit not at a particularly dynamic rate,” said Daniel Hartmann, senior economist Bantleon Bank. But with the franc still nearly a third stronger than when Lehman Brothers collapsed in 2008, SNB interim Chairman Thomas Jordan has warned repeatedly that the central bank stands ready to take further steps to restrain the currency if necessary. Trade unions have called on the SNB to shift the cap towards 1.40 per euro. But economists said the fourth-quarter growth data would not provide them with further ammunition. “We don’t expect the cap to be shifted,” said Maxime Botteron, economist at Credit Suisse. “Deflationary risks hardly exist any more. We expect positive inflation prints on the month ahead. So the central bank won’t introduce fresh measures.” The franc’s strength has hit companies ranging from bank UBS to cement maker Holcim. Firms in the export and the tourism sectors are particularly feeling the pinch. The SNB forecasts economic growth of 0.5 per cent this year, down from a 1.9 per cent expansion in 2011. The euro zone debt crisis has hurt the Swiss economy as the currency bloc buys more than half of Switzerland’s exports. Nevertheless, exports of goods grew 2.8 per cent in the fourth quarter from a year earlier. Trade in chemicals and related products -such as drugs produced by Novartis and Roche -contributed strongly to that rise, the economics secretariat said. Exports of precision instruments, watches and jewellery, which are particularly popular in emerging markets like China and Hong Kong, showed positive developments, the secretariat said. Despite the strong franc, which makes imports cheaper, imports of goods were 0.4 per cent softer, the data showed.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss economy defies strong franc in q4 Arab Today, arab today swiss economy defies strong franc in q4

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss economy defies strong franc in q4 Arab Today, arab today swiss economy defies strong franc in q4

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday