Switzerland: GDP decelerates slightly in Q4
March 3, 2015
In the fourth quarter, GDP grew 0.6% over the previous quarter in seasonally-adjusted terms. The print came in slightly below the 0.7% increase reported in the previous quarter; however, it overshot the 0.3% expansion the markets had expected. Compared to the same quarter last year, GDP growth was stable at Q3’s 1.9% expansion.
Q4’s slight deceleration came as a result of a slowdown in domestic demand, while the external sector performed better compared to the previous quarter. Private consumption rose 0.3% in Q4, which was slightly down from the 0.6% increase seen in the third quarter. In addition, total investment fell 12.1% over the previous quarter, which marked a notable deterioration over the 4.9% drop recorded in Q3. However, growth in government consumption rose from 0.7% in Q3 to 1.9% in Q4, thus marking the fastest increase since Q1 2009.
On the external side of the economy, exports of goods and services accelerated from a 4.1% increase in Q3 to a 9.3% rise in Q4. In addition, imports rose 5.8%, which was an improvement over the 2.2% rise seen in the previous quarter. As a result, the external sector’s net contribution to growth improved from 1.5 percentage points in Q3 to 3.1 percentage points in Q4.
Author: Ricardo Aceves, Senior Economist