The Swiss economy is only growing slowly. While the local economy is progressing relatively smoothly, the industry is feeling the deteriorating international environment.
As a result, in the June-September 2022 period, gross domestic product (GDP) increased by 0.2 percent from the previous quarter, according to the State Secretariat of Economic Affairs (Seco) on Tuesday. Compared to the same quarter of the previous year, GDP grew by 0.5 percent.
Therefore, the increase is at the lower limit of expectations. Economists surveyed by the AWP news agency had seen the improvement as +0.2 to +0.5 percent compared to the previous quarter. In fact, when compared on a yearly basis, values around 1 percent were estimated. This was influenced by Seco’s clear downward revision of the previous two quarters’ growth (Q2: 0.1 instead of 0.3 percent; Q1: 0.3 instead of 0.5 percent).
The construction industry must act
According to Seco, the local economy supported growth. In particular, private consumption developed above the average despite relatively high inflation rates. On the other hand, there was a decline in the domestic economy in construction: The value added in the construction sector decreased by 2.2 percent compared to the previous quarter.
Value added in manufacturing also fell slightly (-0.2 percent). According to Seco, the chemical-pharmaceutical industry has returned to significant growth after two negative quarters. In other areas, however, the difficult international environment had a slowing effect. Machinery and metal industries were mentioned by name. (SDA/sfa)