31 October 2001, 09:38 SNB's Gehrig: 2002 Swiss GDP around 1%, Eyeing Forex
FRANKFURT (MktNews) - Switzerland is not facing a recession next
year, as growth is likely to be 1% or higher, Swiss National Bank Vice
President Bruno Gehrig said Tuesday.
Growth is likely to be closer to the lower end of current forecasts
ranging from 1% to 2%, Gehrig told reporters at Swiss-German business
conference here. The financial difficulties of the carrier Swissair
should not have a major impact on the economy, as the effect is likely
to be more psychological, he said.
Amid the global slowdown, the central bank will follow closely the
impact of the exchange rate on the economy, Gehrig said.
"Of course the foreign exchange rate plays a key role in the
assessment of economic developments and we certainly face a situation
where economies obviously slowing down," he said.
"It's clear that an appreciation of franc is not good," he said.
Therefore we will closely monitor future (forex) developments and we
will evaluate the forex rate in a broad context."
The U.S. economy is likely to recover gradually over the course of
next year after a downturn in the fourth quarter, Gehrig said. "The
measures which have been taken in the U.S. will certainly not lead to
a strong boost in the first quarter," he said.
While the sharp deterioration in U.S. consumer confidence
aggravates the situation, Gehrig said he was less concerned
about confidence in Europe, which appears more robust.
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