Swiss Economy Shrinks As Estimated

(RTTNews) - Switzerland's economy contracted in the third quarter as the front-loading effects linked to the US trade policy faded, the State Secretariat for Economic Affairs reported Friday.

Gross domestic product shrank 0.5 percent sequentially, reversing a 0.2 percent rise in the second quarter. The SECO confirmed the estimate published on November 17.

The negative result was largely down to the chemical and pharmaceutical industry, where strong exports gave way to a compensatory decline, the SECO said.

Data showed a notable 4.2 percent decrease in goods exports. Meanwhile, private consumption rose 0.4 percent underpinned by spending on housing and energy, health, restaurant and hotel services. By contrast, government spending slid 0.2 percent, reflecting lower value added in public administration. Equipment investment was down 0.1 percent and construction investment decreased 0.2 percent.

Overall domestic final demand edged up 0.1 percent and imports increased 0.6 percent. On a yearly basis, economic growth eased to 0.5 percent from 1.3 percent in the second quarter.

In October, the government projected the economy to grow 1.3 percent this year and 0.9 percent in 2026. This forecast is based on the technical assumption that international tariffs will remain at current levels.

Earlier this month, the United States and Switzerland reached a trade deal. Accordingly, Swiss companies will invest $200 billion in the US and in return, the US will reduce the tariff on Swiss goods to 15 percent from 39 percent.