Switzerland: GDP expands slightly in Q2
August 28, 2015
In the second quarter, GDP expanded 0.2% over the previous quarter in seasonally-adjusted terms, which contrasted the previous quarter’s 0.2% contraction. As a result, in Q2, the economy avoided falling into technical recession.The print also contrasted the 0.1% decrease the markets had expected. Compared to the same quarter last year, GDP rose 1.2%, which matched Q1’s figure.
In Q2, private consumption expanded 0.3%, which was up from the 0.2% increase seen in Q1. In addition, fixed investment swung from a 0.3% contraction in the first quarter to a 0.9% expansion in the second quarter. On the other hand, growth in government consumption inched down from 0.3% in Q1 to 0.2% in Q2.
On the external side of the economy, exports of goods and services dropped 4.4% over the previous quarter, which was a deterioration over the 3.7% decrease seen in Q1. Moreover, imports plummeted 7.6% compared to Q1, which contrasted the 2.2% expansion seen in Q1. As a result, the external sector’s net contribution to growth swung from minus 3.9 percentage points in Q1 to plus 1.4 percentage points in Q2.
Author: Dirina Mançellari, Senior Economist