Switzerland has again lowered its growth forecast for next year, but predicts a slowdown in inflation.

The State Secretariat for Economic Affairs, which is responsible for making economic forecasts for the government, predicts that gross domestic product will grow only 1 percent in 2023. That's half this year and below the September forecast of 1.1%. At the same time, consumer prices are expected to rise 2.2 percent next year - less than previously estimated, Bloomberg reported.

In 2024, the Swiss economy is likely to recover and grow by 1.6%, with inflation falling to 1.5% - below the Swiss National Bank's (SECO) ceiling of 2%.

As fears about energy shortages have largely subsided in the coming months, Switzerland is expected to avoid a recession -- economists forecast only one-quarter of next year's contraction. Consumer price growth peaked at 3.5 percent in August - its highest in three decades - and has been declining since then.

Credit Suisse economists forecast a faster slowdown in Swiss inflation and expect it to fall below 2 percent in the second quarter of next year.