GENEVA, Oct. 28(Xinhuanet)-- Swiss government economists said Friday that the Swiss economy is showing signs of improvement, and stronger exports and heightened domestic demand should mean better business prospects in 2006.

The State Secretariat for Economic Affairs(Seco) said in a statement that it now expected growth of 1.3 percent for this year, with gross domestic product(GDP) rising by 1.7 percent in 2006.

In July, the government economists had predicted growth of just0.9 percent for 2005 and 1.5 percent next year.

"In autumn 2005, the global economic prospects look relatively favorable, despite the fact that oil prices continued to rise all summer," said the Seco report.

"In Switzerland, the economic prospects have improved significantly since the beginning of the year. Early indicators, based on surveys, show a clear upwards trend in recent months," said Seco.

"It is encouraging that in comparison with other European countries, this tendency is not restricted to exports but is also reflected in stronger domestic demand," it added.

Seco said that assuming the global economic situation remained positive, Swiss economic growth would speed up next year, fuelled by stronger exports and private consumption.

Inflationary growth would be moderate, Seco said, with an increase of around one percent in 2005 and 2006.

Seco said the improvement in the economy would have no immediate effect on the job market, but if the positive economic trend continued, the employment market would start to see an improvement next year. Enditem