BRUSSELS (dpa-AFX) - The Swiss economy is set to shrink less than expected this year, but the recovery next year would be slower than forecast earlier, due to the adverse effect from the second wave of the coronavirus pandemic and lockdown measures, the State Secretariat For Economic Affairs, or SECO, said Tuesday.
Gross domestic product is set to fall a seasonally and calendar adjusted 3.3 percent this year, which is slightly less than the 3.8 percent decline projected in October. Yet, this would be the strongest decrease since 1975.
The growth forecast for next year was lowered to 3 percent from 3.8 percent. The Swiss economy is projected to grow 3.1 percent in 2022.
'If the health situation eases, growth is likely to increase significantly as time goes on, although uncertainty remains extremely high,' the SECO said.
Experts slashed the growth forecasts for next year for personal consumption, exports and imports.
The unemployment rate is projected to climb to 3.3 percent next year from 3.2 percent this year. Thereafter, it is seen easing to 3 percent in 2022.
Consumer prices are forecast to fall 0.7 percent this year and edge up 0.1 percent next year. Inflation is projected at 0.3 percent in the year after.
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