October

According to estimates by the KOF Swiss Economic Institute, the summer season went well. The outlook for the winter season is also positive. Swiss tourism has turned the corner. KOF expects overnight stays to increase by 2.7% in 2019 and by 2.4% in 2020. Swiss destinations have exercised price restraint over the past few years, which has improved their competitiveness. The strongest growth impulses continue to come from abroad, in particular from overseas markets.

The KOF Economic Barometer fell in October after having risen in the previous month. At 100.1 points, the barometer is now as good as on its long-term average of 100.0. Since May of this year, the KOF Economic Barometer has thus been fluctuating around its long-term average. The Swiss economy is therefore in the coming months likely to grow with average rates.

The KOF MPC figure for 25 October 2018 is 0.69. The ECB confirmed its confidence in the sustained convergence of inflation to the aim even after the gradual winding-down of net asset purchases.

The Swiss economy is booming. Gross domestic product (GDP) for this year is set to rise by an impressive 2.9 per cent. International economic activity is providing a positive stimulus, and the domestic economy is boosting business activity as well. Unemployment is also set to fall as a result of the strong economy. KOF expects the rate of growth to slow slightly to 1.7 per cent next year before GDP growth will likely rebound to 2.1 per cent in 2020.