ZCZC
BCN-25
SWITZERLAND-ECONOMY-GROWTH
Swiss economy stumbles in third quarter
ZURICH, Nov 29, 2018 (BSS/AFP) – Switzerland’s economy abruptly went into
reverse in the third quarter, contracting by 0.2 percent, with exports
tumbling and even the country’s vaunted financial sector seeing growth halt.
“The strong, continuous growth phase enjoyed by the Swiss economy for one
and a half years was suddenly interrupted,” said the State Secretariat for
Economic Affairs (SECO).
“Switzerland is thus following the significant economic downturn seen at
the same time in other European countries, particularly Germany,” it added in
its statement.
Germany, Europe’s powerhouse, also registered a 0.2 percent drop in the
third quarter, while other European economies have seen growth slow as global
uncertainty mounts due to threats by the United States to rip up trade deals
and slap tariffs on imports.
Switzerland’s 0.2 percent drop in gross domestic product in July through
September, compared with the previous three months, was due in considerable
part to a drop in exports.
Switzerland’s economy is heavily geared towards exports, and total exports
of goods slumped 4.2 percent.
Even the financial sector recorded a drop in value added and in its
exports of services.
Dry weather also caused a drop in hydroelectric production.
The abrupt slowdown of the Swiss economy was unexpected, with analysts
surveyed by the Swiss financial news agency AWP expecting growth of 0.2 to
0.6 percent.
Compared to the third quarter of last year, the Swiss economy grew 2.7
percent.
BSS/AFP/HR/1420