No recession
29/08/2008
Switzerland is not heading for a recession despite a predicted slowdown in turnover and profits, according to a cross-industry survey of firms.
The survey, conducted by the KOF Swiss Economic Institute, showed Switzerland faring better than global rivals thanks to a strong domestic economy and traditional strengths in finance and commodities trading.
The banking sector is particularly upbeat about prospects in the second half of the year after suffering from the United States subprime mortgage crisis in the past few months.
However, the construction industry and firms that rely on exports outside the European Union are bracing themselves for a stagnation of business for the remainder of 2008.
"Switzerland is an open economy and will ultimately have to take its place in the international environment, but at the moment it is in the lucky situation that the domestic economy is performing very well," KOF head Jan-Egbert Sturm said.
