In the first quarter of 2023, Switzerland experienced little economic growth relative to the previous quarter due to stagnant private consumption and public spending. Overall, GDP is only about 0.7% higher than in the same quarter of 2022. Inflation is at 3.2% relative to the previous year, due to the strong economic rebound after the pandemic, rising energy prices, and uncertainty related to the Russian invasion of Ukraine. This value is relatively low in an international comparison, with OECD countries having experienced an average inflation of 8.57% over the same time span. The unemployment rate is stable at 2%, half a percentage point lower than in the previous year. The OECD economic outlook expects annual inflation to decrease to 2% in the second half of the year, and to 1.2% in 2024. Despite the current tightening of the monetary policy by the SNB to slow down inflation, Swiss GDP is expected to grow at an average annual rate of 2% in 2023 and to exceed 3% in 2024. Unemployment is expected to increase slightly in 2023 and to stabilize in 2024.

July 2023