The Swiss economy once again recorded dynamic growth in the 2nd quarter of 2018. GDP (+0.7%) expanded at an above-average rate for the fifth quarter in a row. This expansion was largely supported by manufacturing, which has been experiencing a remarkable upturn since spring of 2017. Exports of goods increased accordingly.
| Switzerland’s GDP grew by 0.7% in the 2nd quarter of 2018, after 1.0% (revised) in the previous quarter,1 marking over a year of rapid economic expansion. Similarly strong growth rates over several quarters were last reached in 2014. |
Switzerland Gross Domestic Product (GDP) QoQ, Q2 2018(see more posts on Switzerland Gross Domestic Product, ) Source: investing.com - Click to enlarge |
| Thus, the Swiss economy grows again at a faster pace than the Euro area, despite somewhat weakening momentum in the 2nd quarter. |
Switzerland Gross Domestic Product (GDP) YoY, Q2 2018(see more posts on Switzerland Gross Domestic Product, ) Source: investing.com - Click to enlarge |
Production SideManufacturing provided the most substantial boost to growth in the 2nd quarter (+1.5%). The sector continued its unbroken positive development over the previous quarters, underpinned by robust foreign demand and the favourable exchange rate movements compared to recent years. Thanks to marked growth in energy production from hydropower and nuclear power plants, the energy sector also recorded an extremely positive quarterly result (+4.8%). Accordingly, exports of industrial products and energy rose sharply. Total exports of goods2 increased at an above-average rate again after two weak quarters (+2.6%). So far, the international trade dispute has had hardly any impact. |
GDP YoY Growth Source: bfs.admin.ch - Click to enlarge |
GDP GrowthThe service sector displays a little more heterogeneous picture than at the beginning of the year. Accommodation and food services (+1.4%) grew rapidly following a rise in the number of overnight stays of guests from Switzerland and abroad. The sector’s value added climbed to its highest level since 2011. The financial sector also continued its recovery. Both the sector’s value added and exports of financial services picked up moderately once more. Additionally, the entertainment sector (+10.1%) provided a sharp boost to growth.3 However, some domestically oriented service sectors lost a degree of momentum, including the health sector (+0.5%) and business-related services (+0.3%). Finally, trade (-0.2%) suffered a drop in value added, triggered in particular by sluggish growth in wholesale. |
Quarter on Quarter Growth Rates ESVG, Q2 2018 Source: bfs.admin.ch - Click to enlarge |
ExportsIn keeping with the slowdown in various production sectors with domestic focus, domestic final demand ran out of steam somewhat. Only growth in investment in construction (+0.8%) accelerated noticeably. Private consumption (+0.3%) expanded at a slightly below-average rate, hindered in particular by low energy consumption because of weather conditions. Investment in equipment (-0.3%) consolidated at a high level following multiple quarters of above average growth. This was accompanied by a fall in imports of goods4 and services (-0.7 %). |
Year on Year Growth Rates ESVG, Q2 2018 Source: bfs.admin.ch - Click to enlarge |
Download press release: Gross domestic product in the 2nd quarter of 2018
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