Switzerland Unemployment (% of active population, eop)

GDP flatlined in Q4. However, the reading was weighed on by changes in inventories, and underlying momentum was robust: Private consumption growth remained a key driver of activity, while government spending and investment gained steam. In contrast, goods exports fell amid slowdowns abroad and a shift to spending on services. Turning to 2023, available data is fairly upbeat. Both the KOF Economic Barometer and the services PMI averaged far higher in January–February than in Q4. Less positively, in the same period the more export-focused manufacturing PMI indicated worsening manufacturing operating conditions, likely due to soft goods demand abroad. In other news, on 19 March UBS agreed to take over Credit Suisse in order to avoid the collapse of the latter. The swift resolution to Credit Suisse’s financial woes should limit the economic fallout, although large job cuts are still possible as part of the merger.