The State Secretariat for Economic Affairs (SECO) released its GDP and inflation forecasts on Thursday. The agency kept unchanged its growth forecasts at 1.4% in 2016 and 1.8% in 2017.

"There is still uncertainty about the potential recovery that may occur during the rest of 2016 and in 2017 in those sectors which have suffered heavily from the weak European economy and strong Swiss franc over the past few years," the SECO said.

The agency noted that the referendum on Britain's membership in the European Union was also a risk to the Swiss economy.

The average annual unemployment rate is expected to be 3.6% this year and 3.5% next year.

The consumer price inflation is expected to be -0.4% in 2016, up from the previous estimate of -0.6%, and +0.3% in 2017, up from the previous estimate of 0.2%.