Switzerland GDP Q2 2020


Switzerland: GDP records largest drop on record in Q2

August 27, 2020

GDP fell at a quicker pace in the second quarter, contracting a record 8.2% on a seasonally-adjusted quarter-on-quarter basis (Q1: -2.5% s.a. qoq).

On the domestic side, the downturn reflected contractions in private consumption and fixed investment. Household spending shrank at a quicker rate of 8.6% seasonally-adjusted quarter-on-quarter in Q2, down from the 4.7% contraction in Q1 and driven by the closure of shops and restaurants. Fixed investment declined at a more pronounced rate of 8.8% in Q2, down from the 2.8% contraction in the prior quarter, due to lower investment in equipment. Public consumption, however, rose 0.2% (Q1: +0.8% s.a. qoq).

Exports of goods and services slid at a steeper rate of 5.7% in Q2 (Q1: -4.1% s.a. qoq). In addition, imports of goods and services dropped at a sharper pace of 5.6% in Q2 (Q1: -1.3% s.a. qoq) following depressed domestic demand.

On an annual basis, economic activity fell 9.3% in Q2, down from the previous period's 0.7% contraction.

Looking ahead, the economy is forecast to make up some lost ground in the second half of the year on stronger domestic and external demand. However, an expected rise in the unemployment rate will temper the rebound, while possible restrictions to tame a second wave of Covid-19 pose a downside risk.

FocusEconomics Consensus Forecast panelists expect the economy to contract 6.1% in 2020, which is unchanged from last month’s forecast. In 2021, the panel expects GDP to expand 4.8%.

Author:, Economist

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Switzerland GDP Chart

Switzerland GDP Q2  20 20

Note: Quarter-on-quarter changes of seasonally- and working-day adjusted GDP and year-on-year variation in %.
Source: State Secretariat for Economic Affairs (SECO) and FocusEconomics Consensus Forecast.

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