Swiss Economy Expands 0.5% in Q2

In the second quarter, Switzerland's GDP rose by 0.5 percent, above expectations, adding to signs of recovery as private consumption rebounded and investment on machinery increased for the first time in a year.

In Q2, household final consumption expenditure increased by 0.7 percent. Healthcare has been the key factor in the growth of private consumption for four quarters. General government final consumption expenditure grew by 0.1 percent.

Following a series of weak readings, gross fixed investments increased 1.4 percent. This rise was due to the regaining strength of investments in machinery and equipment (+2.9 percent) which returned to a positive growth path following a period of weakness. Investments in construction reported a slight reduction (-0.3 percent).

The exports of goods shrank in Q2 by 0.9 percent compared with the previous quarter. A decrease was registered in the categories of precision instruments/watches/jewellery, vehicles and food and beverages. Only exports by the metals industry reported a slight positive rise. Imports of goods rose by 1.4 percent.

The services sector saw a continuation of the recovery in tourism which began in mid-2012 (+1.6 percent in Q2). Other services exports broadly stagnated (+0.1 percent). Overall, the export of services in the 2nd quarter 2013 grew by 0.3 percent and the import of services by 0.6 percent.

On the production side the areas of industry and the construction sector contributed negatively to GDP growth. The increase in value added in the services categories “provision of financial services”, “insurances”, “real estate and housing”, “provision of freelance, scientific and technical services” as well as “healthcare and social welfare” accounted for the majority of the 0.5 percent increase in GDP on the production side. 

Swiss Economy Expands 0.5% in Q2

SECO | Nuno Fontes |
9/3/2013 8:47:53 AM