Swiss govt cuts 2005 GDP growth forecast -
Tuesday, October 19, 2004 7:59:53 AM
afxpress.com
(Updates with more comments on economic outlook)
ZURICH (AFX) - SECO, the Swiss economics ministry, said it lowered slightly its 2005 GDP growth forecast to 2.0 pct from its previous forecast of 2.3 pct
It stuck to its growth forecast for this year of 1.8 pct
The 2005 cut reflects the expectation of slightly weaker global economic conditions next year, higher oil prices, as well as domestic demand being dampened by ongoing weakness in the labour market, SECO said in a statement
The 2005 upswing is not in danger, however, it said, with global conditions and low interest rates setting the stage for a solid performance
"Growth is expected to be broad-based, boosted not only by exports, but also by levels of corporate investment and robust consumer demand," it said
Oil prices have risen strongly since mid-September and are likely to remain high next year, but prospects for the world economic outlook remain good, it said
And although there are indications of slightly slower growth in the US, the world's largest economy is still set to deliver a lively performance, it said
Sentiment indicators for the euro zone -- Switzerland's most important export market -- have been positive over recent months, and the region is set to record growth of 2 pct next year, it added |
