Switzerland: GDP growth accelerates in Q3
December 3, 2014
In the third quarter, GDP increased 0.6% over the previous quarter in seasonally-adjusted terms. Growth in the Swiss economy was faster in Q3 than the revised 0.3% growth rate tallied in Q2 (previously reported: 0.0% quarter-on-quarter) and also overshot the 0.3% rise the markets had expected. Compared to the same quarter last year, GDP accelerated from a 1.6% increase in Q2 to a 1.9% expansion in Q3.
Q3’s better-than-expected reading reflected a broad-based improvement. Growth in private consumption picked up to 0.6% in Q3, which doubled the growth observed in Q2. Government spending swung from a 0.2% contraction in Q2 to a 0.9% expansion in Q3. In addition, gross fixed investment bounced back in Q3, increasing 0.5%, which was up from the 0.6% contraction tallied in Q2.
On the external front, exports of goods and services marked a notable improvement in the third quarter, growing 3.6% over the previous quarter, which contrasted the 9.1% decrease observed in Q2. Imports also improved and swung from an 11.8% plunge in Q2 to a 2.2% increase in Q3. Consequently, the net contribution from the external sector to overall economic growth rose from 0.5 percentage points in Q2 to 1.2 percentage points in Q3.
Author: Ricardo Aceves, Senior Economist