28
Oct
Switzerland’s GDP strengthens in Q3, surprising forecasters
Nominal GDP has passed the CHF 700 billion per year mark. Equity valuations above their
historical average. Clear overvaluation of the Swiss franc in terms of PPP.
Key points
- Swiss GDP’s +0.4% growth rate in Q3 comes as a favourable surprise to forecasters
- Switzerland’s GDP exceeds CHF 700 billion per year for the first time
- Growth is still driven by private and government consumption
- The sky is clearing a little for leading indicators
- Quiet end to the year for the Swiss franc
- The Swiss franc is clearly overvalued in terms of the OECD’s purchasing power parities (PPPs)
- The Swiss National Bank (BNS) will stay on course
- Slow rebound of long-term rates
- Equity markets benefit from the absence of alternatives despite high valuations
