Switzerland GDP Growth Strongest in 1-1/2 Years in Q2

Switzerland's economy grew by 0.6 percent in the June quarter of 2016, as compared to an upwardly revised 0.3 percent expansion reported in the previous three months and beating market consensus of a 0.4 percent growth. It was the strongest growth since the fourth quarter 2014, mainly driven by government spending and foreign trade.

In the second quarter, household consumption remained unchanged, following a 0.5 percent increase in the previous quarter. Government expenditure grew by 1.7 percent, significantly faster than a 0.2 percent expansion in the preceding three months. 

Investment in equipment fell  0.9 percent, compared to a 3.7 percent growth in the March, mainly due to machines and vehicles. Investment in construction also dropped by 0.3 percent, faster than a 0.2 percent decline previously.

Exports of goods (excluding non-monetary gold and valuables) increased by 0.8 percent, compared to a 2.3 percent increase in the preceding quarter. Positive contributions came from chemicals and pharmaceuticals. In contrast, sales declined for precision instruments, watches, jewelry and machinery/appliances. heading. Imports of goods (excluding non-monetary gold and valuables) rose 0.5 percent, slowing slightly  from a 0.6 percent increase in the March quarter.

Year-on-year, the economy expanded 2.0 percent, accelerating from an upwardly revised 1.1 percent growth in the March quarter while market estimated a 0.9 percent growth. It was also the fastest expansion since the December quarter 2014.

Switzerland GDP Growth Strongest in 1-1/2 Years in Q2

Seco l Rida Husna | rida@tradingeconomics.com
9/6/2016 7:38:01 AM