Swiss Growth Outlook at Risk After Surprise GDP Drop - by Simone Meier

Swiss government officials and economic forecasters may cut their predictions for growth this year after gross domestic product unexpectedly fell in the second quarter.

The BAK Basel Institute, Bank Sarasin, Zuercher Kantonalbank, UBS AG and the State Secretariat for Economic Affairs might lower their 2012 forecasts after a government report today showed that GDP fell 0.1 percent from the first quarter, when it rose 0.5 percent, less than the 0.7 percent previously reported. That’s the first drop since the third quarter of 2011, when the Swiss National Bank imposed a franc ceiling to help protect the economy.

SNB President Thomas Jordan yesterday reiterated his commitment to defend the franc ceiling with the “utmost determination” amid signs the economy is faltering as the euro area’s deepening slump and waning global growth erode export demand. Bruno Parnisari, head of the state secretariat’s economic policy, said in an interview the government may need to cut its 2012 outlook in new projections on Sept. 18.

Read more: Swiss Growth Outlook at Risk After Surprise GDP Drop: Economy - SFGate