Swiss GDP stopped running in last three month

Switzerland’s economy grew at a slower pace than expected in the three months to June as growth provided by the financial sector and hotels was offset by “sluggish” growth for trade and public administration.

Gross domestic product grew 0.3 per cent quarter on quarter in the three months to June, according to the State Secretariat for Economic Affairs, coming in below economists’ estimates compiled by Reuters of 0.5 per cent growth.

 The figure was up from a downwardly revised 0.1 percent during the first quarter.

The hotel and catering industry grew 3.4 per cent and the financial sector grew 2.7 per cent in the second quarter, while trade contracted 0.2 per cent and public administration slipped 0.1 per cent, characterised by by the secretariat as “sluggish”.

“Manufacturing, the financial sector and the hotel and catering industry significantly boosted growth while developments in trade, public administration and the healthcare sector were sluggish,” SECO said in a statement.

While exports of goods slightly increased, exports of services like patents and licences declined, SECO said. Meanwhile goods imports rose sharply, driven by a considerable growth in imports of chemical and pharmaceutical products.

In June the Swiss government lowered its forecast for 2017 economic growth to 1.4 percent from 1.6 percent, saying recent improvements had fallen short of expectations.

The economics ministry is due to give its next forecast for Swiss annual GDP on September 21.