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Swiss GDP Growth Likely To Pick Up In H2: Capital Economics

Switzerland's economic growth is likely to pick up in the second half of this year and subdued inflation will keep interest rates on hold for a long time, Jack Allen, an economist at Capital Economics, said.

Gross domestic product grew 0.3 percent sequentially in the second quarter, faster than the 0.1 percent rise in the first quarter, which was revised down from 0.3 percent, official data showed on September 5.

"The expenditure breakdown in Q2 was a mixed bag," the economist observed.

"Looking ahead, survey indicators suggest that GDP growth will pick up in the second half of the year," the economist said.

Another release showed that Swiss consumer price inflation edged up in August. Headline inflation rose to 0.5 percent from 0.3 percent in July.

Capital Economics anticipates slow growth to increase the already significant amount of spare capacity in the economy, keeping inflation far below Swiss National Bank's 2 percent target.

"As such, the SNB looks set to keep interest rates at their current low levels for a very long time," he said.

by RTT Staff Writer

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