Swiss economic growth surpasses expectations in Q2

The Swiss economy expanded in the second quarter, driven by foreign trade and government consumption, according to the State Secretariat for Economic Affairs. The real GDP expanded 0.6 percent quarter-on-quarter in June quarter, as compared with the 0.3 percent growth recorded in the prior quarter. The second quarter growth came in more than economists’ projections of 0.4 percent growth.

While foreign trade and government consumption positively contributed to the GDP growth, household consumption expenditure stagnated and investment in construction and equipment dropped a bit by 0.9 percent. Government spending grew 1.7 percent.

On the production front, growth was widespread throughout sectors. Energy sector, government related sectors and other services mainly boosted the GDP growth. Meanwhile, goods exports grew 0.8 percent in the June quarter, driven by chemicals/pharmaceuticals category. Meanwhile, imports of goods rose 0.5 percent, with chemicals/pharmaceuticals category indicating the highest growth. Exports and imports of services in the second quarter dropped 0.1 percent and 1.1 percent respectively.

On a year-on-year basis, the Swiss economy expanded 2 percent in the second quarter of 2016, as compared with the 1.1 percent year-on-year growth recorded in the first quarter. Economists’ projection was for 0.9 percent growth.