Switzerland's economic trajectory gained momentum in the second quarter, as initially projected, driven by robust manufacturing and services sector activity. Data from the State Secretariat for Economic Affairs (SECO) confirmed this on Tuesday.
The Gross Domestic Product (GDP) increased by 0.5 percent sequentially, progressing from 0.3 percent growth in each of the preceding two quarters. This growth rate aligns with the preliminary estimate released on August 15.
When factoring out the influence of sporting events, the GDP experienced a 0.7 percent rise, consistent with the initial estimate and following a moderate 0.5 percent growth in the first quarter.
According to SECO, the above-average performance in the second quarter was propelled by significant gains in the chemical and pharmaceutical sectors, while growth in other sectors exhibited variability, indicating subdued domestic demand.
Manufacturing value added surged by 2.6 percent, exceeding the average pace. Notably, the chemical and pharmaceutical industries exhibited a robust quarterly growth of 8.4 percent, fueled by dynamic export activity.
The increased exports of goods and services underscored foreign trade as a vital contributor to GDP growth.
Conversely, domestic final demand remained stagnant, with imports of goods and services also showing no growth. A 1.4 percent decline in equipment investment was balanced by moderate rises in construction investment and consumer spending.
Government consumption edged up by 0.2 percent, while private spending grew by 0.3 percent, bolstered by expenditures in housing and healthcare.
A rise in both domestic and international guests led to a 2.7 percent expansion in the accommodation and food services sector. Positive growth was also observed in health and social care services, business-related services, and public administration.
The transport and communication sector remained flat, whereas financial services, retail, and trade experienced moderate declines.
On an annual basis, economic growth accelerated to 1.4 percent, compared to 0.3 percent in the first quarter.
Additional data released today indicated a more-than-anticipated easing in Swiss consumer price inflation, reaching a five-month low in August.
The Federal Statistical Office reported that the consumer price index increased by 1.1 percent year-over-year in August, decelerating from a 1.3 percent rise in July. The anticipated increase was 1.2 percent.
