08:59 AM EST, 11/08/2024 (MT Newswires) -- The outlook for the global economy has brightened up, said UBS.

The bank expects to see "solid" United States growth next year, and a large stimulus package is likely to support the Chinese economy. In Europe, higher real wages could boost economic activity.

This should in turn boost the Swiss economy, which, adjusted for sporting events, is likely to grow by 1.5% in 2025 -- close to long-term growth, stated UBS.

Consumption demand should remain "solid," wrote the bank in a note to clients.

Expected wage growth of 1.4% next year should support consumption, although a likely slightly higher unemployment rate of 2.8% -- annual average -- may be a drag, added UBS. Exports and investments should benefit from a recovery in foreign trade.

The bank anticipates a slight further decline in Swiss inflation in 2025. Falling electricity prices, a stronger

Swiss franc and a decrease in the reference interest rate

are likely to lead to an inflation rate of 0.7%, down

from 1.1% this year.