Response to SNB move: ZEW outlook Switzerland gloomy
Following the announcement of the Swiss National Bank (SNB) to abandon the peg for the exchange rate between franc and euro, the economic outlook for Switzerland deteriorated to -10.8bsp, according to the latest ZEW financial Stability Survey in Switzerland.
Although the long term impact of the SNB decision cannot be confirmed, the most recent ZEW survey, conducted among 38 Swiss analysts highlights a clear divergence between responses collected prior to abandoning the peg and after.
Respondents who answered prior to the SNB measures rated the outlook for Switzerland at +10.8bsp, while the among responses collected after the SNB announcements, which represent a minority, the outlook dropped to -71.4bsp.
The authors of the survey highlighted that given the fact that only a small minority of respondents has been interviewed after the SNB measures, the long term implications of the drop confidence can only be deducted over the coming months.