Nominal GDP has passed the CHF 700 billion per year mark. Equity valuations above their
historical average. Clear overvaluation of the Swiss franc in terms of PPP.
Key Points
Swiss GDP’s +0.4% growth rate in Q3 comes as a favourable surprise to forecasters
Switzerland’s GDP exceeds CHF 700 billion per year for the first time
Growth is still driven by private and government consumption
The sky is clearing a little for leading indicators
Quiet end to the year for the Swiss franc
The Swiss franc is clearly overvalued in terms of the OECD’s purchasing power parities (PPPs)
The Swiss National Bank (BNS) will stay on course
Slow rebound of long-term rates
Equity markets benefit from the absence of alternatives despite high valuations