The State Secretariat for Economic Affairs (SECO) released its economic growth forecasts for Switzerland on Tuesday. SECO lowered its economic growth forecast for 2015 to 0.8% from its March estimate of 0.9% due to a weak economic activity in the first quarter of 2015 and due to the downward revision of the U.S. economic growth in 2015.

SECO forecasted the growth of 1.6% in 2016, down from its March estimate of 1.8%.

Inflation forecasts were left unchanged. Inflation is expected to be -1% this year and +0.3% in 2016.

Unemployment rate is expected to be at 3.3% this year, at 3.5% in 2016, up from its March estimate of 3.4%.

SECO warned that there is a risk on the Swiss economy due to the sharp appreciation of the Swiss franc.

SECO expects the Swiss economy to improve in the coming quarters.