07
Jun
Best quarter for Swiss GDP (+0.3%) since June 2016
Exports are driving growth (+3.9%). Spending is disappointing (+0.1%). Inflation rises +0.5%. Leading indicators are lagging behind. The SNB believes the Swiss franc to be overvalued.
Key points
- Best quarter for growth in Swiss GDP since June 2016 (+0.3%)
- Clear, welcome bounce back in exports (+3.9%)
- Private spending is struggling (+0.1%) despite the unemployment rate remaining low (3%)
- Public spending rising (+0.4%)
- Temporary decline in foreign trade in April
- Leading indicators are once again wavering
- The SNB will soon hold 700 billion in currency reserves
- The SNB still considers the Swiss franc to be overvalued; depreciation is expected in 2017
- Bond market consolidates before upcoming rise in long rates in Switzerland
- Generous valuation, renewed risk in equities and listed real estate assets, despite long term opportunities
