Swiss GDP Unexpectedly Stalls in Q2

The Swiss GDP stalled from the previous quarter in the three months leading to June of 2023, missing estimates of a 0.1% expansion and holding the 0.3% increase from the quarter ending March.

The result pointed to a renewed period without growth for the Swiss economy, suggesting that the Swiss National Bank’s historical tightening campaign is being transmitted to a greater extent halfway through the year.

Private consumption advanced by 0.4% from 0.6% in the earlier quarter, while government consumption slowed to 0.1% from 0.4%.

On the other hand, equipment and software investment contracted by 3.7% to fully erase the 2.5% growth in the first quarter, aligned with a 0.8% contraction in construction investment due to higher borrowing costs.

In the meantime, trade volumes fell considerably, with imports of goods sinking 7.2% and exports of goods dropping 2.5%.

Over the previous year, the Swiss GDP expanded by 0.5% in the second quarter.