IMF: Switzerland faces tougher environment in 2023
The International Monetary Fund (IMF) reported that the Swiss economy is facing a more challenging environment in 2023 after its solid performance in 2022.
In the statement made by the IMF, the pioneering findings of the audit within the scope of the 4th article consultation on the Swiss economy were shared.
“Following the solid performance in 2022, Switzerland faces a more challenging environment in 2023,” the statement said.
Pointing out that Switzerland’s economic growth, which was 2.1 percent last year, is expected to slow down to 0.8 percent this year, it was stated that this was due to the weak global outlook, tight monetary policy and the cooling of pent-up demand. In the statement, it was noted that the Swiss economy is expected to grow by 1.8 percent in 2024.
Stating that inflation is expected to be 2.5 percent in 2023, inflation is expected to remain above the 0-2 percent price stability range of the Swiss National Bank (SNB) until 2024 due to the tight labor market, wage pressures and rent increases associated with high housing loan rates. reported to be expected.
Reminding that the situation at Credit Suisse, which suffered a series of risk management errors and financial losses, suddenly deteriorated in March, it was noted that the authorities responded to these difficulties with determined steps.
Emphasizing that the growth and inflation outlook and downside risks to financial stability are important, the statement said that despite strong financial sector buffers, low public debt and policy credibility, policies should aim to counter these risks.
Emphasizing the importance of continuing to close data gaps, improving and accelerating the recovery and planning solutions in order to better monitor financial sector risks with the increasing global financial stability concerns, it was stated that monetary policy should continue to stick to the data and respond if the runoff effects continue.
In the statement, it was noted that in the face of its growing balance sheet and significant risks, SNB should continue to regularly review its investment strategy and take adequate safeguards.
It was also stated in the statement that Swiss authorities should continue labor market and pension reforms, accelerate the green transition, and maintain dialogue and relations with the European Union (EU).