Switzerland's government downgraded the economic growth forecast significantly for this year and the coming year, as economic prospects are hindered by a tense energy situation and sharp price increases, especially in Europe.
The expert group projects Swiss GDP to grow 2.0 percent in 2022 instead of the 2.6 percent projected in June. Likewise, the projection for next year was downgraded to 1.1 percent from 1.9 percent.
A tighter monetary policy and stronger price dynamics will likely lead to a smaller growth in demand abroad than in the June forecast.
A severe downturn and large-scale production stoppages in Europe would severely affect the Swiss economy, the SECO said.
