Switzerland Economy Stagnates in Q2


The Swiss economy posted zero growth in the second quarter of 2014, after reporting 0.5 percent expansion in the previous period. The trade balance made a small negative contribution to growth while investment remained unchanged.

Household consumption expenditure and that of non-profit organizations increased by 0.2 percent compared with the previous quarter. Positive contribution came in particular from housing and recreation and culture. Expenditure on healthcare delivered negative contributions. General government and social security consumption expenditure fell for the second time in succession (-0.3 percent).

Gross fixed investments remained at the same level as in the first quarter (0.0 percent). Investments in equipment rose by 0.7 percent, driven by investments in IT and vehicles while investment in construction reported a fall (0.7 percent).
 
Exports of goods (excluding precious metals, jewelry and gems as well as works of art and antiques) increased by 0.7 percent in the second quarter. Sales of  jewelry made a positive contribution to growth while those of chemical and pharmaceutical products also made a small positive impetus. In contrast, the remaining categories such as mechanical/electrical engineering showed a reduction. Exports of services (including tourism) increased 0.6 percent and imports of services also showed a positive trend (+2.4 percent).
 
Imports of goods (excluding precious metals, jewellery and gems as well as works of art and antiques) increased by 0.7 percent in the second quarter of 2014, with imports of chemical and pharmaceutical products in particular showing a rise. Imports of machinery/electronics as well as metals also showed a positive trend, whilst imports of precision instruments/watches/jewellery were lower.
 
On the production side, many sectors reported virtually no change in value between the the first and second quarters. Industry, energy and water supply made an overall small positive contribution to GDP growth. In contrast, the value added in the financial sector and some public sector economic areas showed a stagnating to slightly falling trend.
 
Year-on-year, the economy advanced 0.6 percent in the second quarter of 2014, after growing  a revised 2.1 percent in the previous quarter.
 

Switzerland Economy Stagnates in Q2


SECO l Rida l rida@tradingeconomics.com
9/2/2014 1:47:05 PM