Swiss economy grows 0.3% in Q2 as services shine

ZURICH (Reuters) -The Swiss economic system grew an actual 0.3% within the second quarter versus the primary three months due to the providers sector’s continued restoration from pandemic restrictions and strong shopper spending, information confirmed on Monday.

That in comparison with progress of a revised 0.5% within the first quarter, or 0.2% when stripping out the influence of huge sporting occasions, the State Secretariat for Financial Affairs (SECO) stated.

Gross home product expanded 2.8% year-on-year, or 2.3% adjusted for sporting occasions.

Economists polled by Reuters had anticipated GDP to rise 0.4% quarter-on-quarter and three.0% year-on-year.

The Swiss economic system has weathered current turbulence on world markets comparatively effectively.

The federal government sees no fast want for measures to assist cushion the burden of surging vitality costs, it stated final week, noting the economic system was performing effectively, unemployment was low, and inflation was set to wane subsequent yr.

Shopper value inflation rose a higher-than-expected 3.5% in August, the seventh month in a row it has surpassed the Swiss Nationwide Financial institution’s 0-2% goal vary.

Most Swiss public well being restrictions to comprise the unfold of coronavirus had been lifted in the beginning of April, serving to the lodging and meals providers sector broaden 12.4% within the quarter, SECO stated.

Inbound tourism noticed a marked enhance in in a single day stays, particularly by European and U.S. friends, however the worth added by this sector was nonetheless round 10% under pre-crisis ranges.

Solely two service sectors noticed a decline in worth added within the quarter: monetary providers (–1.5%) and commerce (–2.1%), the latter principally because of meals retailing and wholesale commerce.

General home demand noticed strong progress, accompanied by a 2.1% rise in imports.

The manufacturing sector slipped 0.5% after seven quarters of sturdy progress pushed by the chemical and pharmaceutical business, which confronted declining exports.

However different industrial sectors that are sometimes extra delicate to the financial cycle recorded modest progress.

(Reporting by Michael Shields;Modifying by Paul Carrel and Emelia Sithole-Matarise)