Sep 05, 2022 03:26AM ET
By:AnalysisWatch
The Swiss economy grew by a real 0.3% in the second quarter from the first three months, thanks to continued recovery in the services sector following pandemic curbs and robust consumer spending, data showed Monday.
The State Secretariat for Economic Affairs (SECO) said that compared with revised growth of 0.5% in the first quarter, or 0.2% excluding the impact of major sporting events, in the second quarter.
GDP rose 2.8% year-on-year, or 2.3% if sporting events are taken into account.
Reuters economists polled by Reuters had expected GDP to rise 0.4% quarter-on-quarter and 3.0% year-on-year.
The Swiss economy has weathered the recent turbulence in global markets relatively well.
The government sees no immediate need to take measures to help cushion the burden of rising energy prices, it said last week, noting that the economy was performing well, unemployment was low, and inflation was set to ease next year.
Consumer price inflation rose 3.5% higher than expected in August, marking the seventh consecutive month in which it exceeded the Swiss National Bank's target range of 0%-2%.
Most Swiss health restrictions to contain the spread of the coronavirus were lifted in early April, which helped the accommodation and food services sector grow by 12.4% in the quarter, according to SECO.
Inbound tourism saw a notable increase in overnight stays, especially from European and U.S. guests, but value added in this sector remained 10% below pre-crisis levels.
Only two service sectors recorded a decline in value added in the quarter: financial services (-1.5%) and trade (-2.1%), the latter mainly due to food retail and wholesale trade.
Overall, domestic demand experienced strong growth, accompanied by a 2.1% increase in imports.
The manufacturing sector retreated by 0.5% after seven quarters of strong growth driven by the chemical and pharmaceutical industries, which faced declining exports.
But other industrial sectors, which tend to be more sensitive to the economic cycle, recorded modest growth.
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