ZURICH, March 21 (Reuters) - The Swiss government reduced its outlook for the country’s economic growth during 2017 in its latest forecast on Tuesday, adding it expected inflation to pick up.
The State Secretariat for Economic Affairs (SECO) said it expected economic growth of 1.6 percent in 2017, down from the forecast of 1.8 percent it gave in December.
The downward adjustment to resulted from a “sluggish close of 2016,” SECO said.
“Growth is nevertheless expected to step up significantly over the coming quarters, largely offsetting the lack of momentum at the turn of 2017,” it said.
SECO expects economic growth of 1.9 percent in 2018, the same as its earlier view. This meant the Swiss economy “would continue to recover at a solid albeit not exceptionally strong rate,” SECO said.
Inflation was forecast to be 0.5 percent in 2017 and 0.3 percent in 2018, compared to its earlier view of 0 percent and 0.2 percent. (Reporting by John Revill)