Swiss economy to slow down in 2012

The Swiss economy is expected to slow down in 2012, the Zurich-based KOF Swiss Economic Institute (KOF) said Tuesday in an economic forecast report. According to the leading Swiss economic think-tank, the Swiss economy will see a growth rate of 1.5 percent next year, down from this year's 2.3 percent. "The dampers on growth are the weak US economy, the debt crisis in Europe and the persisting strength of the Swiss franc," KOF said on its website. Exports, above all, are expected to feel the impact, with a forecasted growth of 2.3 percent in 2012, compared to 3.9 percent this year. The drop in exports is mainly a result of a decline in the exports of services, while exports of goods are expected to grow by 4 percent next year. A strong Swiss franc is one of the major causes for sluggish exports. KOF said the current exchange rate will be difficult to bring in line with their production costs for many companies.