Swiss GDP slight expansion in Q1

Switzerland's economy expanded at a slightly faster pace in the first quarter, data from the State Secretariat for Economic Affairs showed Thursday.

Quarter-on-quarter real growth of 0.3 percent surpassed the upwardly revised 0.2 percent in the fourth quarter but lagged the 0.4 percent expansion expected on average in a Reuters poll of five economists.
In the same period GDP performance recorded a 0.5 per cent expansion in the eurozone, 0.6 per cent in Germany and 0.2 per cent in the UK.

On a yearly basis, GDP growth accelerated to 1.1 percent from 0.7 percent in the fourth quarter. Economists had forecast an annual growth of 1.3 percent.

On the expenditure side, household consumption improved slightly by 0.1 percent on quarter, while government spending rose moderately by 0.4 percent.

Following the previous quarter's fall, investment in equipment and software rose 1.7 percent and that in construction gained 0.4 percent.

Imports of goods slid 1.5 percent, while services imports grew 5.7 percent. At the same time, exports of goods recovered 3.9 percent and shipment of services climbed 3.2 percent.
According to Geoffrey Minne, Economist at ING, “as in most developed countries, private consumption remains central for the recovery in Switzerland".

The GDP reading followed a string of mixed news for the export-dependent economy, which the Swiss National Bank has been trying to boost via negative interest rates and currency intervention to rein in the strong franc.
SNB Chairman Thomas Jordan on Wednesday again called the franc "significantly overvalued" and said the central bank had ample room to expand its balance sheet if needed.
The trade surplus narrowed in April to its lowest level since the Swiss franc's surge rocked the country more than two years ago as industry continued to struggle with the strong currency and pharmaceuticals exports slowed.