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Q2 2015: Swiss GDP up 0.2%, Strong Rise of Investments on Equipment, Consumption Lags Again

Swiss GDP increased by 0.2% q/q and 1.2% y/y. Once again, investments on equipment and software (+3.6%) was one of the main drivers. For many economists investment on equipment and software is the most desired GDP growth component.

SECO: Gross domestic product in 2nd quarter 2015 

 

(source)
Each quarter, the Swiss department of economics (SECO) estimates the GDP and its components. The main purpose of these estimations is to provide data that allows for an assessment of the cyclical development of the main macroeconomic aggregates in a timely adequate and credible manner.

Switzerland’s real gross domestic product (GDP) grew by 0.2% in the 2nd quarter of 2015 compared to the previous quarter. The balance of trade in goods made a positive contribution to GDP growth because imports fell more than exports; on the other hand, the balance of trade in services had a negative impact. Consumption expenditure by private households and government together with investments also provided support for GDP growth in the 2nd quarter of 2015. Compared to the 2nd quarter of 2014, GDP grew by 1.2%; the GDP deflator decreased in the same period by 1.1%.

Swiss GDP 2015 Q2Graph:
real GDP – percentage change to previous quarter and volume index:
2010:1-2015:2, volume index (2010=100), at prices of the preceding year, chained values, reference year 2010, seasonally and calendar adjusted data

Detailed Data

(source)

Quarterly Change of GDP

Imports of goods fell by 3.6% QoQ, while exports of goods remained nearly stable. This lead to another increase of the trade balance for goods.
But the trade balance for services was weakened by imports of services (e.g. Swiss traveling abroad or foreign residents delivering services in Switzerland).

Despite strong immigration, consumption growth remained at relatively weak levels also seen in 2014. The

Swiss GDP Q2 2015 Q on Q

Yearly Change of GDP

The yearly figures express similar tendencies:

  • Weak household consumption growth and relatively strong growth of government consumption.
  • Growth of investments on equipment and software, as opposed to 2013 and 2014 (change of methodology for intellectual property)
  • The construction got hit by negative rates that the banks carried forward to the sector and by an expected slowdown of immigration
  • Heavy growth on imports of services countered the rising trade surplus on goods.

Swiss GDP Q2 2015 Year on Year

George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.

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