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Economic News Daily – Tuesday 14/06/2022

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SWITZERLAND

Credit Suisse analysts forecast Swiss GDP growth of 2.5% in 2022 and 1.6% in 2023. Economic growth is still supported by the country’s reopening following the COVID-19 restrictions and its “resilience to the difficult global environment,” according to the report. Inflation is seen averaging 2.3% over the year, up from the previous forecast of 1.8%. In 2023, it should fall to around 1%.

GERMANY

The annual inflation rate in Germany was confirmed at 7.9% in May of 2022, according to the latest report published by the Federal Statistical Office (Destatis) on Tuesday. It was the third straight month of record high inflation since German reunification and also marking the highest level since the winter of 1973/1974, mainly driven by faster rises in prices of energy (38.3% vs 35.3%), and food (11.1% vs 8.6%), which was the highest rate since at least 1992.

JAPAN

Japan industrial output  fell for the first time in three months in April, dropping 1.5 percent on month, in contrast to the 0.3 percent rise in March and 2.0 percent increase in February, final data from the Ministry of Economy, Trade and Industry showed on Tuesday. On a yearly basis, the decline in industrial output deepened to 4.9 percent from 1.7 percent. The initial estimate showed an annual fall of 4.8 percent.

WORLD

Global inflation pressures will intensify and affect outlook Fitch Ratings warned on Monday.  “Recent lockdowns in China are adding to global manufacturing supply-chain pressures. Energy and food supply disruptions from the Russia-Ukraine war are having a swifter impact on European inflation than expected,” the credit rating agency said in its Global Economic Outlook report for June. Due to these circumstances, Fitch lowered the global economic growth forecast by 0.6 percentage points to 2.9%.