The growth of the Swiss economy will likely slow to 2.2 pct this year and 1.9 pct in 1988 after reaching 2.8 pct last year according to a study by a group at Basle Universitys Institute of Applied Economics. It blamed the expected slowdown partly on a disappointing outlook for exports caused by the weaker dollar. Exports would likely grow by 2.8 pct this year and by 3.0 pct in 1988 after 3.0 pct in 1986 the group predicted. Final domestic demand will also fall back to a likely 3.0 pct this year and 2.3 pct next after 4.1 pct in 1986. However the domestic picture will likely be mixed. The study said investment in plant and equipment would continue to be the main motor for the growth in domestic demand although it was unlikely to grow as fast as last years 7.4 pct rising this year by 4.5 pct and by 2.8 pct in 1988. While the growth in private consumption is expected to fall back to 2.5 pct this year and 2.1 pct in 1988 from last years 3.1 pct public consumption spending will likely grow by 1.9 pct in 1987 and 2.0 pct next year after 1.5 pct in 1986. Consumer prices were seen rising by 1.7 pct this year and 2.4 pct in 1988 after just 0.8 pct in 1986. Unemployment should fall back to 0.7 pct from last years 0.8 pct.
SWISS GROWTH SEEN SLOWING THIS YEAR AND NEXT