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- The Swiss gross domestic product decreased by 0.2% between July and September compared to the previous quarter.
- Economists expected significantly better values.
- Nevertheless, this still means annual growth of 2.4%.
On average, economists had forecast growth of 0.4% for the third quarter. They were wrong. Parallel to foreign countries – especially Germany, the Swiss economy has contracted. The first time in a year and a half.
As reported by the State Secretariat for the Economy, industrial and service companies are affected. The weakening of the energy sector was particularly marked. The dry summer has resulted in production losses in hydroelectric plants.
The violence of the recession we were not expecting.
"The coming slowdown was evident due to the third quarter's export data, but we were not expecting the intensity of the recession," said Roland Indergand, Seco's sales manager.
Above all, it was surprising that domestic demand also fell. After a period of slowdown in Europe (especially Germany) and Asia, no foreign stimulus would come, it was clear. But that too consumption and investment would be so low surprised.
Hope for the fourth quarter
More specifically, private consumption spending in the third quarter barely increased by 0.1%. Here, the desire to make larger purchases in a context of low real wage developments was low, Seco said. State consumption expenditure (-0.1%) was even slightly reduced.
The surprise fall between July and September seems to be a short pause. The positive figures already known from October exports suggest that growth will be even better in the current fourth quarter.
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