ZURICH, May 31 Reuters Switzerland39;s economic upswing is expected to ease this year as higher inflation, the war in Ukraine and renewed Chinese lockdowns slow the postpandemic recovery that generated 0.4 growth in the first quarter, the government said on Tuesday.
Rising prices are proving a drag on many European economies as they reduce disposable incomes of households forced to spend more on fuel and food.
Lockdowns in parts of China to check new coronavirus outbreaks also make it harder for companies to get vital components and close off parts of the country39;s huge internal market.
High uncertainties persist and have increased particularly in China, said Ronald Indergand, an economist at the State Secretariat for Economic Affairs SECO.
It39;s possible that we see slower growth this year abroad and in Switzerland compared with our previous forecast, he told Reuters.
But we will still see substantial growth rates of GDP, he said. I don39;t think there is a risk of an immediate recession because there is still room for the postpandemic recovery to continue.
SECO is due to give its latest forecasts on June 15 after forecasting growth of 2.8 in March, although Indergand declined to comment on potential downward revisions.
There is still space for a strong rebound effect, particularly in areas like hospitality and the transportation sectors which I expect to see materialise in the second and third quarters of this year, he said.
The economy grew by 0.4 during…