June

The KOF Economic Barometer rose again in June for the first time in three months. It increased by 1.7 points to 101.7 points, stopping its downward tendency in spring. The current Barometer value is now slightly above the long-term average of 100.0. Thus, the KOF Economic Barometer indicates a slightly above-average economic development in Switzerland. The tailwind for the Swiss economy is no longer as strong as during winter.

The Swiss economy is growing quite strongly. KOF predicts that GDP will rise by 2.3% in 2018. This performance is set to continue in 2019, though in a slightly weaker form. The unemployment rate will fall somewhat, and prices will rise only gradually.

The KOF MPC figure for 14 June 2018 is 0.41. The ECB communicated that substantial progress towards a sustained adjustment in the path of inflation towards the ECBs aim in the medium term has been made.

Although growth in Swiss health care spending slowed slightly last year, it is likely to accelerate to 3.9 per cent by 2019. While rising wages and an aging population are driving up health care expenditure, the political initiatives introduced should rein in costs to some extent. This year will see per-capita spending exceed CHF 10,000 for the first time.