Switzerland: GDP growth records best result since Q2 2024 in Q1
GDP reading: GDP growth accelerated to 0.5% on a seasonally adjusted quarter on quarter basis in the first quarter, up from 0.3% in the fourth quarter of last year and marking the best result since Q2 2024. Adjusting for sporting events—which frequently skew Swiss GDP data due to the country hosting several major global sports organizations—the economy expanded an ever stronger 0.8%. Booming pharmaceutical exports—potentially linked to front-loading ahead of possible U.S. tariffs—were a key driver.
Drivers: Looking at expenditure components, private consumption growth fell to 0.2% in Q1, marking the weakest expansion since Q1 2021 (Q4 2024: +0.5% s.a. qoq). Public consumption growth softened to 0.4% in Q1 (Q4 2024: +0.6% s.a. qoq). Meanwhile, fixed investment growth waned to 0.5% in Q1, below the 1.3% increase logged in the prior quarter. On the external front, exports of goods and services growth improved to 10.5% seasonally adjusted quarter on quarter in the first quarter, which marked the best reading since Q3 2022 (Q4 2024: +6.2% s.a. qoq). In addition, imports of goods and services growth picked up to 13.1% in Q1 (Q4 2024: +3.4% s.a. qoq).
Slowdown on the cards: Our panelists expect easing GDP growth later this year as the boost from export front-loading fades.