Switzerland's economy is set to contract this year owing to the 'franc-shock' and falling oil prices, the KOF Swiss Economic Institute said Wednesday.
The Zurich-based think-tank slashed the growth projection for this year to -0.5 percent from 1.9 percent seen in December. The forecast for next year was cut to zero from 2.1 percent.
Growth was estimated at 2 percent for 2014, a tad above the December projection of 1.9 percent.
"The Swiss economy is expected to experience a short recession in the summer semester of 2015," KOF said.
"The direct effect on the Swiss business cycle of the increase in the value of the franc will be felt on the export market."