Swiss institute lowers 2019 GDP growth forecast to 1.0 pct

GENEVA, March 27 (Xinhua) -- Worsening international conditions are forecast to negatively impact Switzerland's export-driven economy, with the Swiss Economic Institute (KOF) saying Wednesday it is lowering its outlook for this year.

"Brexit uncertainty, economic slowdown in China, downturn in the euro area: the Swiss economy is operating in a tough environment. KOF is lowering its forecast for GDP growth in 2019 from 1.6 percent to 1.0 percent," said the institute affiliated to the Swiss university ETH Zurich in a press release.

However, the latest outlook for 2020 remains virtually unchanged with a growth of 2.1 percent.

"The economic slowdown is likely to continue in China too. Although the outlook for the United States remains sound, the partial shutdown of the U.S. federal government has depressed business activity appreciably in the first quarter of 2019," said KOF.

The Swiss export industry is expected to suffer from worsening international conditions, said the institute.

Real wages are set to grow modestly by 0.4 percent in 2019, further depressing consumer spending, said KOF.

The KOF outlook is in line with forecasts from other economic experts, reported Swissinfo, the website of the national broadcaster.

The government's State Secretariat for Economic Affairs has adjusted its spring forecast to 1 percent from 1.5 percent, while the independent research institute, BAK Economics, and economists at UBS bank trimmed their estimates to 1.1 percent and 0.9 percent respectively for 2019. Enditem