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Switzerland expects below-average economic growth in 2024

The Swiss government slightly increased its economic growth forecast for 2024, but kept it at a below-average level, according to data released on Monday. Meanwhile, Australia’s central bank held its benchmark interest rate unchanged at 4.35% for its fifth straight meeting, saying inflation remains above target and is difficult to lower.

Shane Strowmatt, LGT
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5 minutes
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The Swiss State Secretariat for Economic Affairs (SECO) expects the economy to grow 1.2% in 2024 when adjusted for sporting events. That’s slightly higher than its last projection of 1.1% growth made in March. The economic agency left its forecast for 2025 unchanged at 1.7% growth, citing a recovery in global growth. While private consumption has increased so far in 2024 and the services sector expanded, a stagnation in the industrial sector has dragged down growth. Switzerland’s SMI fell 0.3% at the start of the week.

Elsewhere in Europe, France’s CAC 40 rebounded 0.9% on Monday as French presidential hopeful Marine Le Pen said she is willing to work with centrist President Emmanuel Macron if her party were to be victorious in snap legislative elections starting at the end of the month. Last week, French equities suffered widespread losses after Macron called for fresh elections.

In New York, stock indices continued their record-breaking run of recent weeks on Monday. The driving forces were once again the shares of the major technology companies. The tech-heavy Nasdaq 100 finished Monday’s session 1.2% higher. The Dow Jones Industrial gained 0.5% and the S&P 500 closed 0.8% higher.

The Reserve Bank of Australia (RBA) held its benchmark interest rate at 4.35% for its fifth straight meeting on Tuesday. The RBA noted that inflation remains persistent, and the economic outlook uncertain, with recent data signalling that achieving the inflation target was unlikely to be smooth. Australia’s S&P/ASX 200 closed 1% higher on Tuesday.

In Tokyo, the Nikkei 225 rose 1% after plunging almost 2% on Monday. In South Korea, the Kospi climbed 0.7%. Hong Kong's Hang Seng Index fell 0.2%, while the CSI 300 rose 0.1%.

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Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Germany’s ZEW Indicator of Economic Sentiment, euro area consumer prices, US retail sales.

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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