The Swiss economy will grow at a tepid rate in 2024, the government said on Tuesday, maintaining its earlier forecast for 1.1% growth this year albeit with a lower outlook for inflation.

The government in December said that it expected the economy to grow by 1.1% this year, when adjusted for sporting events, slower than the long-term average of 1.8%.

Next year the Swiss economy will expand by 1.7%, the State Secretariat for Economic Affairs (SECO) said, also the same level as the December forecast.

Still, SECO expects Swiss inflation to decline to 1.5% this year, down from 2.1% in 2023 and below its previous 1.9% forecast.

In 2025, Swiss consumer prices are expected to increase by 1.1%, the same rate as foreseen in December.

"Numerous indicators currently suggest that Swiss economic growth will remain moderate in the near future," SECO said, citing stagnation in the eurozone, Switzerland's biggest export market.

"Overall, Switzerland expects global demand to remain below its historical average until the end of 2025"

With its broad range of industries, including a strong pharmaceutical sector, Switzerland has shown resilience in recent months as other countries like neighbouring Germany have seen growth stall.

SECO forecast a gradual recovery in the global and European economy in 2024, which it said it would boost Swiss exports and investments.

The Organisation for Economic Cooperation and Development (OECD) last week forecast the Swiss economy would grow by 0.9% this year and 1.4% in 2024.

Weak foreign demand, tighter financing conditions and heightened uncertainty were negative factors for the economy the OECD report said.

Swiss industry has also called on the Swiss National Bank to help them deal with a strong Swiss franc, which is compounding weak demand by making their products more expensive abroad. (Writing by John Revill and Dave Graham; Editing by Rachel More and Christina Fincher)