Swiss Economy Avoids Recession in Q2

Switzerland's economy grew 0.2 percent in the second quarter of 2015, compared to a 0.2 percent contraction reported in January to March period and beating market consensus. The expansion was mainly driven by a rebound in exports and an increase in public consumption and investment.

In the second quarter, household consumption expenditure expanded by 0.3 percent, up from a revised 0.2 percent growth in the preceding period. The largest contributions to the growth came from item food products and beverages, health, clothing and footwear, communication, transport and recreation & culture. In contrast, the expenditures in the areas of housing/energy and restaurant and hotels declined. The government final consumption rose by 0.2 percent, following a 0.3 percent expansion in the March quarter.

Investments in equipment rose by 1.5 percent, rebounding from a revised 0.4 percent drop in the previous quarter while investments in construction rose 0.1 percent.

Exports of goods (excluding non-monetary gold and valuables) slightly increased by 0.5 percent, following a revised 2.2 percent fall in the first quarter. Positive contributions came from the sectors of watches, jewelry, precision instruments, chemicals and pharmaceuticals.

Imports of goods (excluding non-monetary gold and valuables) decreased by 3.6 percent, after registering a revised 0.6 percent rise in the preceding quarter.

Year-on-year, the economy grew 1.2 percent, unchanged from an upwardly revised expansion in the March quarter.

Swiss Economy Avoids Recession in Q2

SECO l Rida Husna l
8/28/2015 11:45:23 AM