The Swiss economy is unlikely to slip into a recession with gross domestic product probably moving sideways in coming months, UBS AG (UBS) Chairman Axel Weber said Friday.
"Realistically, the outlook for Swiss economic growth is at best modest, but still better than most of its European neighbors," Mr. Weber said Friday at a conference organized by the KOF economic institute.
The ongoing debt crisis in the euro zone remains a major challenge not only for the Swiss economy, but also for the global economy.
"There will be no sustainable recovery in global economic growth until solutions to the problems in Europe are found," said Mr. Weber, who was appointed UBS chairman in May after stepping down as head of the German Bundesbank.
The KOF economic institute Friday lowered its GDP growth forecast for Switzerland to 0.9%, from its previous projection of 1.2%.
This is in line with the 1% growth seen by both the Swiss central bank and economics ministry. Swiss GDP contracted 0.1% in the second quarter, after growing 0.5% in the previous three months.
Mr. Weber said the Swiss economy is facing major challenges from the strength of the franc, "with the currency still causing problems for many companies."
He said the European banking system also needs to be stabilized, and a recapitalization of banks in many southern European countries are still necessary.
As far as the Swiss financial centre is concerned, Mr. Weber said the improved capitalization has left them well positioned and the country had made steady progress in adapting to the banking secrecy standards set by the Organization for Cooperation and Security.
"Switzerland has also succeeded in concluding tax agreements with some of its neighbors --to date Germany, the U.K. and Austria-- and I hope the German parliament backs the deal with Switzerland," Weber said.
foxbusiness.com
"Realistically, the outlook for Swiss economic growth is at best modest, but still better than most of its European neighbors," Mr. Weber said Friday at a conference organized by the KOF economic institute.
The ongoing debt crisis in the euro zone remains a major challenge not only for the Swiss economy, but also for the global economy.
"There will be no sustainable recovery in global economic growth until solutions to the problems in Europe are found," said Mr. Weber, who was appointed UBS chairman in May after stepping down as head of the German Bundesbank.
The KOF economic institute Friday lowered its GDP growth forecast for Switzerland to 0.9%, from its previous projection of 1.2%.
This is in line with the 1% growth seen by both the Swiss central bank and economics ministry. Swiss GDP contracted 0.1% in the second quarter, after growing 0.5% in the previous three months.
Mr. Weber said the Swiss economy is facing major challenges from the strength of the franc, "with the currency still causing problems for many companies."
He said the European banking system also needs to be stabilized, and a recapitalization of banks in many southern European countries are still necessary.
As far as the Swiss financial centre is concerned, Mr. Weber said the improved capitalization has left them well positioned and the country had made steady progress in adapting to the banking secrecy standards set by the Organization for Cooperation and Security.
"Switzerland has also succeeded in concluding tax agreements with some of its neighbors --to date Germany, the U.K. and Austria-- and I hope the German parliament backs the deal with Switzerland," Weber said.
foxbusiness.com
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