- State Secretariat for Economic Affairs
Swiss economy expanded at a faster pace than it was initially expected, with private consumption helping it perform better than the neighbouring Eurozone. The State Secretariat for Economic Affairs said that the nation's economic output grew 0.6% in the first quarter of this year, accelerating from a 0.3% growth in the last quarter of 2012 and exceeding analysts' expectations who forecasted a 0.2% expansion. Private consumption, which rose 0.6% in Q1, has allowed the Swiss economy to gain the momentum even in the face of a strong currency. The report also showed that the biggest contributions to growth came from spending for healthcare and housing. Meanwhile, general government consumption tumbled 0.9%.
Along with strong domestic demand, the cap on the franc, imposed by the Swiss National Bank almost two years ago, has helped shield Switzerland from the six quarters of recession that have afflicted the neighbouring Eurozone countries, which are the destination for almost half of Swiss exports. According to the SNB's latest estimates the country's GDP is likely to grow between 1% and 1.5% during this year. The bank will update the forecast at its next policy review which is scheduled on June 20.
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