Switzerland Cuts Growth Forecasts Given Energy Risks, Inflation

Shoppers walk along the street after the Swiss government relaxed some of its COVID-19 restrictions at the Bahnhofstrasse shopping street in Zurich, Switzerland, on March 1, 2021. Arnd Wiegmann/Reuters

ZURICH—The Swiss government significantly cut its economic growth forecasts on Tuesday, citing growing risks from a “tense energy situation and sharp price increases.”

It now expects the country’s economy to expand 2.0 percent this year, down from its June forecast for 2.6 percent growth.