Swiss GDP Growth Better Than Expected in Q4


Switzerland's economy advanced 0.6 percent in the fourth quarter of 2014, slowing from upwardly revised 0.7 percent expansion in July to September period. The growth was mainly driven by private and government consumption while exports and imports declined.

Household consumption expenditure grew 0.3 percent quarter-on-quarter, easing from a 0.6 percent growth in the preceding quarter. All subcategories contributed to the rise in consumption except for clothing category. General government consumption expenditure and social security consumption rose by 1.9 percent after registering a 0.9 percent increase in the third quarter.

Investments in equipment rose by 1.0 percent, accelerating from a 0.3 percent growth in the previous quarter. In contrast, investments in construction fell by 1.4 percent, reversing from a 0.3 percent expansion in the September quarter.

Exports of goods (excluding non- monetary gold, valuables and merchanting) declined by 1.0 percent, reversing from a 2.8 percent increase in the third quarter. This contraction was attributable in particular to the precision tools/watches/jewelry category while the majority of other categories such as chemicals/pharmaceuticals and metals/machinery/electronics fell slightly. In contrast, exports of rail vehicles increased markedly. Exports of services rose 0.6 percent, slowing from a 1.1 percent in the previous quarter. Purchases of services grew by 0.5 percent, following a 0.4 percent decline in the third quarter.

Imports of goods (excluding non-monetary gold and valuables) declined by 1.8 percent, reversing from a 1.0 percent rise in the preceding quarter. The majority of the categories reported a fall.The reduction in imports of chemicals/pharmaceuticals in particular had a relatively significant impact on the fall as these account for a high proportion of the overall aggregate. Vehicle imports were the only category to post an increase. 

On the production side,  the manufacturing and financial services sectors grew the most by 1.8 percent respectively, followed by property and housing (+0.5 percent) and public sector (+0.8 percent). In contrast, the construction industry and the transport/warehousing & information/communication sector fell by 0.5 percent respectively.

Year-on-year, the economy advanced 1.9 percent, the same pace as in the previous quarter.

Considering full year of 2014, the economy grew by 2.0 percent, following a 1.9 percent growth in the preceding year.

Swiss GDP Growth Better Than Expected in Q4


SECO l Rida Husna l rida@tradingeconomics.com
3/3/2015 12:04:30 PM