Switzerland: GDP growth flattens in Q2
September 2, 2014
In the second quarter, GDP growth was flat compared to the previous quarter in seasonally-adjusted terms. The print came in below both the 0.5% increase reported in the previous quarter and the 0.5% expansion the markets had expected. Compared to the same quarter last year, GDP slowed sharply from a 2.2% increase in Q1 to a 0.6% expansion in Q2.
Q2’s subdued result showed that a slight improvement in domestic demand compensated for a deterioration in the external sector. Private consumption improved slightly in Q2, increasing 0.2% over the previous quarter, which was up from the 0.1% rise in Q1. Government consumption decreased 0.3% in Q2, which, nonetheless, was less pronounced that the 0.7% contraction tallied in Q1. Fixed investment showed zero growth in the second quarter, which came in below the 0.2% increase in Q1.
On the external side of the economy, exports of goods and services slowed from a 2.3% expansion in Q1 to a meagre 0.6% rise in Q2. Meanwhile, imports swung from a 1.0% drop in Q1 to a 0.9% expansion in Q2. Net exports did not contribute in to overall economic growth in the second quarter, which marked a deterioration compared to the 1.7 percentage-point contribution registered in the first quarter.
Author: Ricardo Aceves, Senior Economist