Switzerland’s economic growth remained unchanged unexpectedly in the third quarter as increase in investment was offset by net trade, the State Secretariat for Economic Affairs said Friday.
In a report, Federal Statistical Office said that Swiss GDP remained unchanged at a seasonally adjusted 0.0%, from 0.6% in the preceding quarter. On the expenditure side, household spending gained 0.1 percent, while government expenditure dropped 0.1 percent. Equipment and software investment as well as construction investment climbed 0.5 percent each.
The full impact of the Brexit vote becomes to be announced, as the Chancellor revealed that output will shrink, while borrowing increases.
Phillip Hammond quoted the Office for Budget Responsibility’s predictions of reductions in economic growth, telling MPs that it is now forecast to be 2.4% lower in 2020 than first predicted, as a result of the June referendum.
The Office for Budget Responsibility was forced to revise down its prediction made before the Brexit vote that GDP would rise 2.2% next year. It now sees the economy expanding by only 1.4% and warns there will be a knock-on effect on the public finances.
According to the FED, the recovery after the crisis of 2008 is coming along nicely although it is a bit slower in Europe. The FOMC is still debating whether a rise in interest rates is indicated, and December seems to be the right month for another rise of 25 basis points.
Swiss GDP numbers came out significantly better than economist’s had anticipated. Swiss exports which rose 3.9% QoQ and 9.5% YoY is the main driver for the beat. The fact the EURCHF gravitated between 1.07 and 1.0950 and USDCHF traded close to parity during that period may have given the Swiss economy some respite.
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