Not-so gloomy forecast after all

Bern, Switzerland (GenevaLunch) – The Swiss State Secretariat for Economic Affairs (Seco) is forecasting higher GDP (gross domestic product) growth and lower unemployment for 2010, even though the economy is still weak and might dip at some point during the year.

The new forecast sees GDP growth of 1.4 percent, double the forecast made in December 2009. Seco has also adjusted its unemployment forecast to 4.3 percent, down from instead of 4.9 percent.

Seco also counsels that other countries’ national and private debt could weigh unfavorably against the Swiss economy. “Countries with above-average growth could be facing appreciation of their currencies,” says the report. The report concludes that “another strong appreciation of the Swiss Franc towards the Euro could have a harmful effect on exports.”

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