Philipp Hildebrand: Overview of the Swiss and global economy Introductory remarks by Mr Philipp Hildebrand, Chairman of the Governing Board of the Swiss National Bank, at the half-yearly media news conference, Berne, 16 June 2011. *  *  *  The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. The target range for the three-month Libor remains at 0.0–0.75%, and the SNB intends to keep the Libor within the lower part of the target range at around 0.25%. The global economic recovery is continuing, even if the outlook has dampened somewhat in the past few weeks. The level of capacity utilisation in the Swiss economy is rising. Despite the strong appreciation of the Swiss franc, the economy continues to benefit from robust international demand. However, margins in the export industry are coming under increasing pressure. For 2011, the SNB is maintaining its forecast of real growth in Swiss GDP of around 2%. Overall, however, downside risks predominate. These include, in particular, the debt problems in the euro area periphery. In addition, high deficits require several countries in various parts of the world to undertake fiscal consolidation measures, economic fragility notwithstanding. The recent commodity price increase weighs on global economic growth and poses upside risks to inflation. In Switzerland, the main risks remain, on the one hand, the effects of the strong Swiss franc on the export industry and, on the other, the danger of overheating in the real estate sector.
In addition to all these developments, global financial conditions tightened, and 2022 was marked by exceptionally high levels of geopolitical, economic and financial uncertainties. In 2022, the Turkish economy continued to grow uninterruptedly despite global supply shocks and unfavorable geopolitical developments stemming from the RussianUkrainian War. Economic activity was particularly strong in the first half of the year and maintained its robust outlook in the second half of the year despite the decrease in external demand. Accordingly, in 2022, the Turkish economy grew by 5.6%, ranking among the top G20 and OECD countries thanks to its growth performance since the last quarter of 2019. In addition, Türkiye ranked ninth in terms of national income calculated according to purchasing power parity and doubled its share in the global economy. In 2022, the Turkish economy reached the highest level of national income in terms of US dollars since 2014. In the first half of last year, annual consumer inflation increased rapidly due to the sharp rise in global energy, commodity and food prices, disruptions in supply processes, and price formations in FX markets detached from economic fundamentals in the last  1/4  BIS - Central bankers' speeches  quarter of 2021. As the effects of global supply shocks waned and FX markets stabilized, a gradual normalization process started in the underlying trend of inflation as of the second half of 2022.