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||2.4||1.3||1.6||1.6|
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||-0.83||6.27 %||Jul 31|
|Exchange Rate||0.99||-0.54 %||Jul 31|
|Stock Market||9,919||-0.82 %||Jul 31|
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August 5, 2019
Calendar-adjusted real retail sales rose 0.7% over the same month a year prior in June, following the 1.1% decline logged in May.
August 5, 2019
Swiss households remained largely pessimistic in the May–July period, with the index prepared by the State Secretariat for Economic Affairs (SECO) improving marginally to minus 8 points from a revised minus 9 points in February–to–April (previously reported: -6 points).
August 2, 2019
Consumer prices fell 0.5% over the prior month in July, down from June’s flat reading.
Switzerland: Manufacturing sector contracts at sharpest pace in a decade in July; service sector slumps for first time since 2016
August 2, 2019
The manufacturing Purchasing Managers’ Index (PMI) produced by Credit Suisse and procure.ch fell to 44.7 in July from 47.7 in June, marking the lowest reading since July 2009.
July 30, 2019
The KOF economic barometer—a leading composite indicator for the Swiss economy, which forecasts a six-month period—climbed to 97.1 points in July, from a revised 93.8 points in June (previously reported: 93.6 points).