Switzerland: GDP growth records best result since Q2 2022 in Q4
The economy grew 0.3% on a seasonally adjusted quarter-on-quarter basis in the fourth quarter, unchanged from the third quarter. This was better than the flat reading for the Euro area and the 0.1% growth recorded in the EU as a whole. On an annual basis, economic growth improved moderately to 0.6% in Q4, from the previous period’s 0.4% expansion.
Household spending growth edged up to 0.3% seasonally-adjusted quarter-on-quarter in the fourth quarter, which marked the best reading since Q1 (Q3: +0.1% s.a. qoq). Government spending ticked up to a 0.6% expansion in Q4 (Q3: +0.4% s.a. qoq). Meanwhile, fixed investment declined at a more pronounced rate of 1.8% in Q4, from the 0.6% contraction in the prior quarter.
Exports of goods and services growth improved to 1.6% seasonally adjusted quarter on quarter in the fourth quarter, which marked the best reading since Q3 2022 (Q3: +0.7% s.a. qoq). In addition, imports of goods and services bounced back, growing 2.5% in Q4 (Q3: -4.1% s.a. qoq).
Our Consensus is for economic activity to expand at a similar pace to Q4 in Q1, and outperformance relative to the Euro area should continue, aided by Switzerland’s comparatively low inflation, unemployment and interest rates.