Swiss Economy Posts Modest Growth in First Quarter

(MENAFN) Switzerland’s economy expanded at a slower pace than previously estimated in the first quarter, according to revised official data released by the State Secretariat for Economic Affairs (SECO).

Gross domestic product (GDP), adjusted to exclude the impact of sporting events, rose 0.4% in the January–March period compared with the previous quarter. This follows a 0.2% increase in the prior quarter. The figure was revised downward from an earlier preliminary estimate of 0.5% published in May.

SECO reported that industrial production was the main contributor to growth at the start of the year, while services showed only limited and uneven expansion across different sectors.

Domestic demand remained subdued, indicating that household spending and private investment played a relatively weak role in supporting overall economic activity.

As stated by reports citing SECO, the updated figures come amid growing external uncertainty, with ongoing conflict in Iran affecting market sentiment and strengthening demand for the Swiss franc as a safe-haven currency. However, a stronger franc can also pressure exporters by making Swiss goods more expensive abroad.

In a separate development, Switzerland’s manufacturing sector showed signs of improvement, with the purchasing managers’ index rising to 57.3 in May from 54.5 in April, marking its strongest level in more than three years.

SECO noted that its GDP calculations exclude major sporting events, which can otherwise distort output figures due to Switzerland’s role as a host for several international sports organizations.

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