Swiss GDP: first quarter better than expected

While Germany fell into recession last week (two consecutive quarters of negative growth), Switzerland is faring better. In the fourth quarter of 2022, Swiss GDP had indeed stagnated, but this morning, SECO published GDP figures for the first quarter of 2023, showing sports-adjusted growth of 0.5% (quarter-on-quarter, or 0.3% without adjustments). Economists were expecting lower growth (0.1%). For the full year, economists expect growth of 0.6%.

This better-than-expected growth was driven in part by private consumption (up 0.6%), as well as exports of goods (4.0%). Consumption of services was particularly strong, especially in the mobility and tourism sectors. Driven by the travel sector, which continues to reinvigorate, value creation recorded above-average growth in the transport and communications branch (0.7%) and in the hotel and catering sector (1.0%). Imports were also lower than expected, perhaps due to lower-than-expected energy prices.