Switzerland: Pace of economic activity in line with Q2
November 28, 2013
In the third quarter, GDP expanded a seasonally-adjusted 0.5% over the previous quarter, which mirrored the result in the second quarter. The figure overshot market expectations of economic growth of 0.4%. Compared to the same period last year, GDP expanded 1.9% in Q3, which was below the 2.5% growth recorded in the second quarter.
On the domestic side of the economy, total consumption decelerated from a 0.5% increase in Q2 to a 0.3% rise in Q3. Private consumption expanded 0.2% (Q2: +0.6% quarter-on-quarter), while government consumption rose 1.1% (Q2: +0.2% qoq). Conversely, fixed investment slowed from a 1.9% expansion in Q2 to a 0.4% rise in Q3.
On the external front, exports of goods and services grew 0.2% over the previous period, which was below the 0.9% expansion recorded in Q2. Imports contracted 0.4%, which contrasted the 0.9% expansion recorded in Q2. The net contribution from the external sector to overall economic growth rose from 0.1 percentage points in Q2 to 0.3 percentage points in Q3.
The State Secretariat for Economic Affairs (SECO) expects the economy to expand 1.8% in 2013, before accelerating to 2.3% in 2014. Meanwhile, the Swiss National Bank sees economic growth averaging between 1.5% and 2.0% in 2013. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.2% in 2013, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects economic growth to accelerate slightly to 1.6%.
Author: Ricardo Aceves, Senior Economist