GDP in Switzerland
Switzerland - GDP
Growth picks up in Q1
The economy grew 0.6% in Q1 2019 over the previous quarter in seasonally-adjusted terms, according to data released by the State Secretariat for Economic Affairs (SECO) on 28 May. This marked an acceleration from the upwardly revised 0.3% expansion recorded in Q4 (previously reported: +0.2% quarter-on-quarter) and exceeded market expectations of 0.4% growth. In annual terms, GDP increased 1.7% in Q1, up from the revised 1.5% logged in Q4 (previously reported: +1.4% year-on-year) and beat market expectations of 1.0% growth.
Q1’s acceleration came largely on the back of a rebound in gross fixed capital formation and faster private consumption growth. Gross fixed capital formation grew 1.1% in Q1, contrasting Q4’s 0.1% contraction, on the back of stronger investment in equipment and software, and construction. Private consumption growth ticked up in the quarter amid a tight labor market and mild inflationary pressures (Q1: +0.4% qoqsa; Q4 +0.3% qoqsa). Government consumption growth was unchanged at 0.3%, while the drag from inventories lessened.
The external sector strengthened, as exports rebounded to post a 0.1% quarter-on-quarter increase in Q1 (Q4: -2.1% qoqsa), likely buoyed by stronger-than-expected economic growth in the Eurozone and a solid manufacturing sector. Meanwhile, imports of goods and services decreased 2.6% in Q1 but less severely than Q4’s 6.6% decline.
Despite Q1’s surprisingly robust outturn, growth is seen slowing this year compared to last. Although this is partly the result of a tough base effect—after the FIFA World Cup and the Winter Olympics boosted growth in 2018—mounting headwinds due to global trade tensions and a projected slowdown in global growth will likely stunt investment and exports.
The State Secretariat for Economic Affairs expects the economy to expand 1.1% in 2019 and 1.7% in 2020. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.2% in 2019, which is unchanged from last month’s forecast, and project growth of 1.5% in 2020.
Switzerland - GDP Data
|Economic Growth (GDP, annual variation in %)||1.9||2.5||1.2||1.4||1.1|
5 years of economic forecasts for more than 30 economic indicators.
Switzerland GDP Chart
Source: State Secretariat for Economic Affairs (SECO) and FocusEconomics calculations.
|Bond Yield||-0.62||6.27 %||Jun 20|
|Exchange Rate||0.98||-0.54 %||Jun 20|
|Stock Market||9,979||-0.82 %||Jun 20|
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June 13, 2019
At its meeting on 13 June, the Swiss National Bank (SNB) maintained its current expansionary policy stance as had been expected by market analysts.
June 3, 2019
Consumer prices rose 0.3% over the prior month in May, up from the 0.2% rise logged in April.
Switzerland: Manufacturing PMI remains mired in contractionary territory in May; services PMI ticks down
June 3, 2019
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch inched up to 48.6 points in May from a near four-year low of 48.5 points in April.
May 31, 2019
Calendar-adjusted real retail sales fell 0.7% in annual terms in April, matching March’s decline.
May 29, 2019
The KOF economic barometer—a leading composite indicator for the Swiss economy, which forecasts a six-month period—dropped to 94.4 points in May from 96.2 points in April.