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Total exports of goods fell 4.2% from July to September. Photo file: AFP
The Swiss economy has abruptly entered
reversed in the third quarter with a contraction of 0.2%, exports
the country's much touted financial sector has seen a slowdown in growth.
"The strong and continuous growth phase that has known the Swiss economy for a year and a half has been suddenly interrupted," said the State Secretariat for Economic Affairs (SECO).
"Switzerland is following the significant economic slowdown observed at the same time in other European countries, particularly Germany," he added.
Germany, a European powerhouse, also recorded a 0.2% drop in the third quarter, while other European economies saw their growth slow as global uncertainty grew under the threat of United States tear up trade agreements and freeze tariffs on imports.
The 0.2% drop in Switzerland's gross domestic product from July to September, compared with the previous three months, is largely due to a drop in exports.
The Swiss economy is heavily export-oriented and total exports of goods fell 4.2%.
Read also: Swiss exports reach new quarterly record
Even the financial sector has seen a drop in value added and its services exports.
Dry weather has also resulted in a decline in hydroelectric production.
The sudden slowdown of the Swiss economy was unexpected. Analysts at the Swiss financial news agency AWP surveyed by analysts expected growth of 0.2 to 0.6%.
Compared to the third quarter of last year, the Swiss economy grew by 2.7%.
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