Credit Suisse sees Swiss 2007 GDP growth easing to 2 pct from projected 3 pct

Swiss economic growth is seen easing to around 2 pct in 2007 from a projected 2 pct full-year growth rate this year, given a slight weakening of the global economy, Credit Suisse Group said in its latest economic forecast. Regardless, the Swiss unemployment rate is seen dipping below 3 pct next year, the bank's chief economist Alois Bischofberger said, cautioning that structural reforms must continue to be implemented even though the current economic environment is benign. Long-term, Swiss economic growth will exceed the 1 pct average growth rate seen from 1991 to 2003, as Switzerland is innovative and open and managed to remove growth obstacles, he said. On world wide growth, he said that the upward trend remains intact but that growth rates will ease slightly below rates seen in 2003-2006. On interest rates, he said Swiss monetary tightening will continue going forward, given that at 1.5 pct, inflation is at the upper end of the 0-2.0 pct threshold the Swiss National Bank defines as price stability range.