The State Secretariat for Economic Affairs (SECO) released its GDP and inflation forecasts on Thursday. The agency upgraded its 2015 growth forecast to 0.9% from 0.8%. GDP for 2016 was downgraded to 1.5% from 1.6%.

"The economy will remain very subdued in the second half of the year and is likely to only start to strengthen again during the course of 2016," the SECO.

The agency noted that the downside risk to the Swiss economy increased since June due to the slowdown in emerging market.

The average annual unemployment rate is expected to be 3.3% this year and 3.6% next year.

The consumer price inflation is expected to be -1.1% in 2015 and +0.1% in 2016.