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Switzerland GDP growth slows to 0.1% in Q1

Staff writer ▼ | June 2, 2016
Switzerland's economy grew by 0.1 percent in the first three months of 2016, as compared to a 0.4 percent expansion reported in the previous quarter.
Switzerland's economy
Swiss business   Household consumption expanded significantly
While household consumption as well as equipment and construction investment expanded significantly, government expenditure contributed negatively to the GDP growth.

In the March quarter, household consumption grew by 0.7 percent, faster than a 0.1 percent increase in the previous quarter. The robust expansion was mainly driven by healthcare sector and housing and energy.

In contrast, government expenditure contracted by 0.8, reversing from a 1.2 percent growth in the final quarter 2015.

Investment in equipment grew by 2.1 percent, rebounding from a 1.1 percent decline in the previous three months, supported by investing in other vehicles. Investment in construction rose 1.1 percent, faster than a 0.2 percent growth previously.

Exports of goods (excluding non-monetary gold and valuables) increased by 2.1 percent (from a 3.2 percent growth in the fourth quarter). Positive contributions came from the precision instruments / watches / jewelery heading.

The majority of other categories such as exports of chemicals / pharmaceuticals and metals / machinery / electronics also have a slightly positive development. Imports of goods (excluding non-monetary gold and valuables) rose 0.4 percent, slowing sharply from a 5.2 percent increase in Q4.

Year-on-year, the economy expanded 0.7 percent, accelerating from a downwardly revised 0.3 percent growth in the December quarter 2015 and market estimates of an 0.8 percent expansion.