Switzerland publishes its GDP data well after other developed economies, and as such Q223 figures may already appear quite outdated in the rapidly changing world. Furthermore, after a strong start to the year, Swiss activity is set to have
slowed down substantially last quarter. Yet, unlike most of its European peers, there is no question over whether Switzerland has possibly fallen into recession and the outlook going into 2024 still looks somewhat more appealing. Indeed, the combination of less restrictive monetary conditions and less painful inflationary pressures should leave domestic demand in a better place than in most other developed economies, while Switzerland does not have to face the same sorts of upcoming fiscal drags either. In this context, the CHF does not seem to be at a disadvantage compared to its peers in the event that a harsh economic reality-check takes place, as it could instead still rely on its safe-haven nature if needed.

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