ZURICH (Reuters) – The Swiss economy grew faster than expected at the start of the year on the back of strong domestic demand and rising exports, the government said on Tuesday.
Economic output adjusted for sporting events grew in the first three months of compared to the last quarter of 2022 0.5 percent, according to data from the Secretariat of State Economic Affairs (SECO), which compiles the data.
Better than the 0.1% growth forecast in a Reuters poll, marking a pick-up from a year-end plateau 2022.
Compared with the same period of 2022, the Swiss economy grew by 0.9%. Economists had forecast a 0.6% year-on-year increase.
Manufacturing picked up after a prolonged slump, rising 0.3% m/m, although the financial sector, hit by the turmoil surrounding the collapse of Credit Suisse – struggled.
Consumer spending rose 0.6% in the quarter, while exports rose 4%.
“Value added in the transport and communications sector (+0.7%) and the accommodation and food services sector (+1.0%) grew at above-average rates, supported by the continued recovery in travel,” SECO said .
Although service consumption performed well, goods consumption grew more moderately, with retail value added falling by 0.4%.
Switzerland’s data compared favorably with neighboring Germany, which last week reported that its GDP fell at fell 0.3% in the first quarter of this year.
Household spending fell in Europe’s largest economy as higher inflation weighed on household consumption.
