Switzerland: Economic barometer reaches 31-month high in February
February 28, 2014
The KOF economic barometer - a leading indicator for future GDP growth - inched up from a revised 2.01 points in January (previously reported: 1.98 points) to 2.03 points in February, which marked the 11th consecutive month of improvement. The reading represents the highest level since July 2011 and just overshot the 2.00 points the market had expected. In its accompanying statement, the KOF Institute underlined that, "the favourable outlook for the Swiss economy is confirmed."
February's improvement reflects the continued improvement in the core GDP sub-indicator (GDP excluding constructional and banking). In line with the core GDP sub-component, the Banking sub-indicator also improved in February. Conversely, the construction sub-gauge fell in February.
The State Secretariat for Economic Affairs (SECO) expects the economy to expand 2.3% in 2014. Meanwhile, the Swiss National Bank expects economic growth to reach nearly 2.0% in 2014. FocusEconomics Consensus Forecast panelists expect GDP to expand 2.1% in 2014, which is unchanged from last month's projection. For 2015, the panel expects economic growth to accelerate slightly to 2.2%.
Author: Ricardo Aceves, Senior Economist