Switzerland: Economy rebounds in third quarter
November 29, 2012
In the third quarter, GDP expanded a seasonally adjusted 0.6% over the previous period, which represents the strongest increase recorded since the last quarter of 2010. The figure contrasted the 0.1% contraction registered in the second quarter and overshot market expectations that had the economy growing only 0.2%. Compared to the same period last year, GDP grew 1.4% in Q3, faster than both the 0.3% expansion observed in Q2 and market expectations of a 0.9% increase. The stronger-than-expected increase was driven by growth in government spending, which increased 1.7% in Q3, more than double the 0.8% expansion observed in Q2. Private consumption, on the other hand, weakened somewhat over the previous period (Q2: +0.3% quarter-on-quarter; Q3: +0.1% qoq). While fixed investment declined 0.5% in Q3, total investment surged 1.8% over the previous period supported by restocking of inventories. On the external side of the economy exports of goods and services increased 0.5% in the third quarter (Q2: +0.4% qoq) while imports accelerated to a 0.8% growth rate (Q2: +0.2% qoq). As a result, the net contribution from the external sector to overall economic growth swung from plus 0.1 percentage points in Q2 to minus 0.1 percentage points in Q3.
Author: Ricardo Aceves, Senior Economist