Financial News: Swiss GDP Growth Accelerates As Estimated

Swiss GDP Growth Accelerates As Estimated

09/03/2024 - 07:24:00 (RTTNews)

(RTTNews) - Switzerland's economic growth accelerated in the second quarter as initially estimated on strengthening manufacturing and services output, data from the State Secretariat for Economic Affairs, or SECO, showed on Tuesday.

Gross domestic product grew 0.5 percent sequentially after posting 0.3 percent growth in the previous two quarters. The rate came in line with the flash estimate published on August 15.

GDP unadjusted for sporting events expanded 0.7 percent, matching the flash estimate. This follows a moderate 0.5 percent growth in the first quarter.

The SECO said the second quarter result was slightly above average, driven by the strong expansion of the chemical and pharmaceutical industry. Meanwhile, growth in the other sectors was mixed, reflecting weak domestic demand.

Value added in manufacturing grew 2.6 percent, which was above-average pace in the second quarter. The chemical and pharmaceutical industry showed a strong 8.4 percent quarterly growth on the back of dynamic exports.

As exports of goods and services increased, foreign trade proved to be an important pillar of GDP growth.

Domestic final demand remained flat and imports of goods and services stagnated. Investment in equipment fell 1.4 percent which was offset by moderate increases in construction investment and consumer spending.

Government consumption moved up 0.2 percent and private spending was up 0.3 percent. It was underpinned by spending in housing and healthcare.

Due to the increase in the number of foreign and domestic guests, the accommodation and food services sector expanded 2.7 percent. Health and social care services, business-related services and public administrations also showed positive growth in value added.

The transport and communication sector stagnated, while moderate declines were seen in financial services, retail and trade.

On a yearly basis, economic growth accelerated to 1.4 percent from 0.3 percent in the first quarter.

Another official data today showed that Swiss consumer price inflation eased more-than-expected to a five-month low in August.

The consumer price index rose 1.1 percent on a yearly basis in August, slower than the 1.3 percent rise in July, the Federal Statistical Office reported. The expected increase was 1.2 percent.

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