-Ipek Ozkardeskaya, Swissquote
Switzerland's economy slowed less than expected in the fourth quarter of 2014, supported by government and consumer spending. According to the State Secretariat for Economic Affairs, the nation's gross domestic product rose 0.6% in the three months through December following a revised growth of 0.7% in the preceding quarter. Analysts, however, had expected a 0.3% expansion. The main contributors to Swiss fourth-quarter growth were private consumption, which climbed 0.3%, as well as government spending, which soared 1.9%. On an annual basis, economic output increased 1.9% in the reported period. The Swiss economy again outperformed its top export destination, the European Union, which recorded quarterly growth of 0.4%, while on an annual basis, the region's economy expanded 1.3% in the fourth quarter.
The data for the three months to December covers the period shortly before the Swiss National Bank's unexpected decision on January 15 to abandon its currency cap against the Euro. The central bank' s decision sent the Swiss Franc soaring, meaning economic growth would be weaker than previously estimated. The previous official forecasts which were released on December 18, 2014 assumed GDP growth of 2.1% for 2015 and 2.4% for 2016, as well as a slight decline in unemployment.
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