Swiss government lowers 2021 GDP forecast

BY Reuters | ECONOMIC | 09/16/21 03:09 AM EDT

ZURICH, Sept 16 (Reuters) - Switzerland's economy is expected to grow by 3.2% this year, the government said on Thursday, lowering its full year outlook as a less sunny global picture limited Switzerland's recovery.

"The economic recovery is set to continue as expected, though growth is initially less dynamic than forecast previously," the State Secretariat for Economic Affairs (SECO) said in a statement.

A less vigorous global recovery, marked by capacity bottlenecks limiting the growth of global industrial production and tightened coronavirus measures hampering the services sector in some countries, meant Switzerland's economic recovery was expected to grow less this year than the 3.6% growth it forecast in June, the government expert group found.

"The downward revision compared with the June forecast (+3.6%) is also due to the fact that, according to the latest data, the economic slump in 2020 was not quite as severe, meaning the catch-up potential is also lower overall."

The upturn is expected to pick up next year, with the Swiss economy anticipated to grow at a rate of 3.4% in 2022, the government said, higher than its previous forecast of 3.3%. (Reporting by Brenna Hughes Neghaiwi Editing by Riham Alkousaa)

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