Switzerland: GDP growth improves moderately in Q3
GDP growth accelerated moderately to 0.2% on a seasonally adjusted quarter-on-quarter basis in the third quarter, from a downwardly revised 0.1% in the second quarter (previously reported: +0.3% qoq s.a).
Household spending increased 0.7% in the third quarter, which was below the second quarter’s 1.3% expansion. A strong labor market and a return to normalcy following the pandemic likely supported spending. Public consumption rose 0.2% in Q3 (Q2: 0.0% s.a. qoq). Meanwhile, fixed investment growth was stable at 0.8% in Q3, amid strong investment in IT and vehicles.
Exports of goods and services increased 14.2% on a seasonally adjusted quarterly basis in the third quarter, which contrasted the second quarter’s 11.1% contraction. In addition, imports of goods and services bounced back, growing 11.2% in Q3 (Q2: -5.9% s.a. qoq), marking the best reading since Q2 2013.
On an annual basis, economic growth waned notably to 0.7% in Q3, from the previous quarter’s 2.3% growth. Q3’s reading marked the worst reading since Q1 2021.
Looking to Q4, our analysts expect a further mild GDP expansion, powered by ongoing private consumption growth thanks to rock-bottom unemployment and mild price pressures by international standards. However, investment is seen declining amid tighter financial conditions.