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Stronger Franc will weigh on economy – Swiss government

FXStreet (Mumbai) - The Swiss government cautioned today that a strong CHF would result in a weaker-than-expected growth, although the bank said assessing the exact impact is difficult.

"As a result of a sharp appreciation of the Swiss currency, manufacturing companies in Switzerland are suffering from a significant loss of price competitiveness. The level of uncertainty for these companies has also increased," the Swiss government's expert group said in a statement on Thursday.

The government said would issue new economic forecasts on March 19. It previously saw Swiss economic growth at 2.1% this year and 2.4% next year, with a slight rise in unemployment.

The Swiss Franc soared across the board after the Swiss National Bank (SNB) abandoned its 1.20-per Euro cap last month. Since then, the Franc has seen a minor recovery on speculation that the banks is considering adopting an unofficial exchange rate corridor.

http://www.fxstreet.es/analisis/el-escner-del-da/2015/02/05/

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