"If the SNB were to tighten monetary policy reflecting better growth, it would have immediate negative domestic effects"
-Christian Lips, an economist at NordLB
The Alpine country expanded at a robust pace in the third quarter, on the back of a stronger exports of goods and government spending, the nation's statistical office reported on Thursday. The Swiss economic output grew 0.5% in the three months through September, the same as in the previous quarter; however, topping even Germany, Europe's largest economy. On an annual basis, GDP of 1.9% surpassed market estimate, which stood at 1.8%. Year-on-year growth in the second quarter was registered at the level of 2.5%. Swiss economy is mostly independent and is driven by shipments. Since the adoption of on the Franc at 1.20 in September 2011, the economy has slipped into contraction only once, while its largest trading partner, the Eurozone, was shrinking during 18 months.
In the third quarter of this year, household consumption inched higher 0.2%, while construction investment soared 1% and exports gained 0.5%. Imports of goods climbed 0.7%, with negative contribution coming from imports of pharmaceutical and chemical products. One of the most welcoming signs is that the majority of the components on the production side improved, with the whole industry making the positive contribution to the growth over the corresponding period.
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