Switzerland’s State Secretariat for Economic Affairs raised its GDP forecast in September and projects the growth rate to contract at an annual rate of 1.7% this year versus expectations for a 2.7% drop in June. At the same time, the group now anticipates GDP to expand 0.4% in 2010, along with an increase in personal consumption of 0.3% versus the previous forecast for a 0.2% contraction in consumption. Exports are expected to contract 9.5% in 2009 amid an initial projection for an 11.2% drop, while foreign demands are expected to rise 3.2% in 2010, topping the June forecast for a 1.4% rise. Unemployment remains to be the major caveat in the recovery going forward as the group forecast the jobless rate to reach 3.8%, while unemployment is expected to reach 5.5% next year amid an initial forecast for a rise to 5.2%. Meanwhile, consumer prices are expected to fall 0.4% this year amid the June forecast for a 0.5% drop, while the 2010 projection held steady at 0.9%.
