Switzerland's increase in profits has surprised everyone. Swiss economy has improved at a steady pace during the end of last year, reflecting a faster-than-expected rebound from the worst recession in more than three decades.

The powerful recovery supported views that the Swiss National Bank will have to revise upwards its growth forecast for the economy, currently 0.5 to 1.0%, at a meeting on March 11, but analysts do not expect an interest rate increase soon.

The State Secretariat for Economic Affairs (SECO), said that the Gross Domestic Product increased by 0.7% in the fourth quarter.

That was well ahead of analysts' anticipation of 0.4% growth. Third-quarter growth was revised up to 0.5% from 0.3%.

The economy of the Euro zone, Switzerland's most important trading partner, hardly grew at all at the end of 2009 with the recovery standing in Germany.

The statistics office reported that consumers increased spending on shoes and clothes for the first time in over a year in the fourth quarter, another signal that confidence is returning.

Overall, private consumption increased by 0.4% on the quarter, capital investment rose by 3.9% and exports swell by 1.6%.

But Switzerland is emerging from the global crisis less damaged than many of its peers as consumers have kept spending high, its Government maintained a budget surplus and the unemployment rate has only mounted to 4.4%.

Swiss economic growth accelerated more than economists forecast in the fourth quarter as exports helped the recovery gain grip.