Swiss KOF hikes 2006/2007 GDP growth forecasts

The University of Zurich's Centre for Economic Research (KOF) said it has raised its Swiss GDP growth forecasts for 2006 and 2007. The economists' GDP growth forecast for 2006 was raised to 2.6 pct from 2.1 pct, while the 2007 GDP growth forecast was lifted to 2.1 pct from 1.9 pct. For the following year, KOF sees a GDP growth rate of 1.5 pct. Economists across the board had underestimated Switzerland's growth rate. Today's forecast hike is the latest in series of revisions. The Basel Economics Institute (BAK) raised its Swiss GDP growth forecast for 2006 to 2.9 pct from 2.7 pct yesterday. BAK also hiked its growth forecast for 2007 to 2 pct from 1.8 pct. Previously, the Swiss state secretariat for economic affairs (SECO) and Credit Suisse had raised their forecasts for Swiss GDP growth, too.