Financial News: Swiss Economic Growth Strengthens In Q2

Swiss Economic Growth Strengthens In Q2

08/15/2024 - 12:02:00 (RTTNews)

(RTTNews) - Switzerland's economy expanded at a faster pace in the second quarter, led by both industry and services sectors, preliminary estimates from the statistical office showed Thursday.

Gross domestic product grew 0.5 percent quarter-on-quarter, flash estimates from the Federal Statistical Office showed. That followed a 0.3 percent increase in the first quarter after adjusting for sporting events.

"Industry was the main contributor to the slightly above average growth. The services sector also grew overall," the statistical office said.

Latest data may give the SNB some caution against cutting rates much further this year - but policymakers will be more interested in the development of domestic demand, which will be released in three weeks' time as part of the full GDP breakdown, Capital Economics economist Adrian Prettejohn said.

GDP unadjusted for sporting events probably rose by 0.7 percent sequentially due to the Olympics and the European Football Championship being held this year, the economist reckoned, as these events normally add around 0.2 percentage points to Q2 GDP in Switzerland as their organizers are based in the country.

Non-adjusted GDP grew 0.5 percent in the first quarter.

"Looking ahead, we think that real income growth will support consumption while moderate economic growth in the euro-zone should support Swiss exports," Prettejohn said.

"Our forecast is for the Swiss economy to grow around its current rate in the second half of the year."

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