Switzerland's economic growth accelerated in the first quarter, driven by robust private consumption and a rebound in equipment investment, according to data released by the State Secretariat for Economic Affairs (SECO) on Thursday.
The country's gross domestic product (GDP) grew by 0.5 percent quarter-on-quarter, following expansions of 0.3 percent in each of the previous two quarters. This growth surpassed expectations, which had predicted a 0.3 percent increase. On an annual basis, economic growth also gained momentum, rising to 0.6 percent from 0.5 percent in the prior quarter, in line with forecasts.
From the production side, the GDP data revealed that growth was primarily supported by services output, while industrial output remained stagnant.
However, the performance within the service sector was mixed. Financial and business-related services experienced contractions, whereas accommodation, food services, health, and social care services expanded at rates close to their respective historical averages. Additionally, the retail sector saw a notable 1.4 percent increase in output from the previous quarter.
In contrast, manufacturing value added decreased by 0.2 percent, while the construction industry experienced a modest expansion of 0.3 percent, spurred by increased turnover in building and civil engineering projects.
Private consumption rose by 0.4 percent, driven by spending on both food and non-food items, while government expenditure saw a 0.2 percent increase.
The positive trend in domestic final demand was further supported by a 0.8 percent rise in equipment investment, marking the first increase in four quarters. Conversely, construction investment declined by 0.2 percent.
International trade figures showed a robust 2.0 percent increase in imports of goods and services during the first quarter. However, goods exports decreased by 3.3 percent, primarily due to a drop in transit trade, while services exports grew by 1.0 percent. Overall, foreign trade had a negative impact on GDP growth.
