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Swiss growth barometer much worse than expected

Published 02/27/2009, 05:38 AM
Updated 02/27/2009, 05:40 AM

ZURICH, Feb 27 (Reuters) - Switzerland's leading growth barometer hit a fresh record low in February, the KOF research institute said on Friday, adding to signs that the country's recession may be deeper than anticipated.

The KOF growth indicator, which points to the economy's likely performance in six months' time, was much worse than expected. It fell to 1.41, the lowest level since the indicator's launch in 1991 and down from a revised -0.93 in January, the KOF Swiss Economic Institute said.

The February figure was below even the lowest forecast in a Reuters poll, which had a median forecast of -1.00.

"Swiss gross domestic product is hence likely to shrink markedly this spring as compared to last year," the KOF said.

(Reporting by Sven Egenter and Katie Reid; editing by David Stamp)

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