Mubasher: Switzerland’s government lowered its growth forecast for this year by third, due to risks arising from the flaring trade conflict between the US and China, a strong franc (CHF) and the steepening slowdown in Germany, according to Reuters.

The Swiss economy is now set to grow by 0.8% in 2019, compared with the June projection of 1.2%, and well below the long-term average growth rate of 1.7%.

Meanwhile, the government retained its growth forecast for 2020 at a rate of 1.7%, from the prior forecast.

“Weaker development than previously assumed is anticipated for the global economy and uncertainty is high, which is weighing on the export economy and investment,” the Swiss government was quoted by Reuters.

Moreover, softening foreign demand from Germany hitting sectors like the metal and machinery manufacturers.

For instance, automotive customers’ demand for metal products from steelmakers like Schmolz+Bickenbach, has been faltering.

In addition, the Swiss franc’s strength has been also hampering exports growth, as it makes Swiss exports more expensive.

By 1:09 pm GMT, the USD/CHF pair rose by 0.21% to CHF 0.9949, while the EUR/CHF pair climbed by 0.47% to CHF 1.0975.