Switzerland to see meager growth of 0.2% in 2015 and 0.5% in 2016

Recent soft economic indicators are pointing to a slowdown in Switzerland economic growth in the coming months. The purchasing managers index has dropped below the 50-mark and all sub-components contributed to the decline.

SNB has also lowered the rate on excess sight deposits (>20x the required reserves), Swiss money market rates have dropped significantly. Going forward more steps likely from the SNB as the ECB has only just commenced its bond buying programme. 

Rabobank notes .....

• We estimate the largest impact of the exchange rate shock on the economy will be on exports and imports, but also consumer spending and investment spending are likely to decline. 
  
  
• However, the effects come with a delay and we expect the largest impact in the third and fourth quarter of this year. We therefore expect a very meagre growth for Switzerland in 2015 (0.2%) and 2016 (0.5%).