Economic growth is projected to pick up gradually in 2015-16. The recent slowdown in consumption should reverse course on the back of stronger confidence, rising real wages and sustained employment gains. Exports are projected to benefit from a weaker currency and gradually improving global growth.Weak commodity prices and remaining slack have delayed the exit from deflation.
The ceiling on the franc is likely to have to be maintained in order to prevent its appreciation and help accommodative monetary policy anchor positive inflation expectations. Should growth decelerate further, fiscal room to manoeuvre is available. Stepping up pre-school funding and boosting tertiary education graduation would increase productivity growth.
Note: All data definitions based on internationally comparable standards and may differ in specific cases from common national definitions.