Jordan sees weak growth for Swiss economy in 2013: report
2012-11-22 11:53:09
The Swiss economy is likely to show weak growth dynamics in 2013 and will pick up momentum as the year progresses, Swiss National Bank Chief Thomas Jordan said in an interview to Tages-Anzeiger.
"For the full year 2012, we still expect 1 percent growth," he said in the interview, which was published on Thursday. The uncertainties are large and the risks are clearly on the downside, he told the daily.
At the same time, he brushed aside concerns that the Swiss economy will slip into recession in the third quarter due to the impact of recent developments in Eurozone, but admitted that Switzerland will experience "very low growth rates" in the third and fourth quarters of 2012.
He said the central bank will release the economic forecast for next year in December.
Responding to a query if the SNB will act should the risks materialize, Jordan said "we do not exclude" the possibility of enacting further measures, if need arises.
He said the minimum exchange rate, introduced in September 2011, is not a tool to fine-tune the economy, but was intended to avoid extremely negative developments in the economy. It is "absolutely necessary" to maintain this franc cap, in the face of weak global economy.
Jordan said the fact that there is no risk of inflation in the economy also supported the case for maintaining the currency cap.
SNB Governing Board member Fritz Zurbrugg said Wednesday that franc cap should be regarded as an extreme measure. "It is not a panacea for all the problems facing the Swiss economy, and carries considerable risks." Zurbrugg said in a speech at the University of Lucerne.