Swiss economy: GDP grew by 0.3% in the first quarter

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As announced by the State Secretariat of Economic Affairs (Seco) on Tuesday, the real gross domestic product (GDP) growth rate for the January-March 2023 period was 0.3 percent. In the fourth quarter of last year, the economy was still stagnant.

Adjusted for international sporting events important to the Swiss economy, growth was even higher at 0.5 percent. The figure for the first quarter (unadjusted) is at the upper limit of the estimates. Economists polled by the AWP had expected GDP growth to be between +0.1 and +0.3 percent.

According to Seco’s knowledge, domestic final demand grew (+0.9%) above the historical average in the quarter under review. Government consumption (+0.0%) stagnated, but private consumption (+0.6%) rose significantly. Mr and Mrs Schweizer spent more money on services in particular. According to Seco, value added in the transport and communications sector (+0.7%) and hospitality industry (+1.0%) increased at an above-average rate, supported by further recovery in travel activity.

Meanwhile, consumer spending on goods was lower. Accordingly, retail trade value added (-0.4%) decreased slightly, albeit from a high level.

According to Seco, investment activity also contributed to the robust development of domestic demand. Investments in equipment increased significantly (+2.6%), with research and development and tools being the main contributors. Construction investments (-0.1%) developed somewhat negatively.

After three consecutive negative quarters, industrial and manufacturing industry value added (+0.3%) rose slightly again. According to the information obtained, while the chemical-pharmaceutical sector decreased at a high rate (-0.6%), value added in other industrial sectors increased.

Meanwhile, the contribution of foreign trade to GDP growth was somewhat negative on balance, mainly driven by significantly increased imports. (SDA)

Source :Blick