Swiss Economic Growth Slows to 0.2% in Q3, Weighed Down by Industry

Switzerland’s economy grew by 0.2% in the third quarter, marking a slowdown from the 0.5% growth recorded in the previous quarter, according to preliminary data released by the State Secretariat for Economic Affairs (Seco) on Friday. The figure aligns with the lower end of economists’ forecasts, which ranged between 0.2% and 0.4%.

Seco attributed the deceleration to a decline in industrial output, which offset positive growth in the services sector. Detailed data on the economy’s performance is expected on November 29.

Earlier in the year, Swiss GDP grew by 0.3% in the first quarter and accelerated to 0.5% in the second quarter, driven by strong demand for pharmaceutical exports, which helped counteract declining industrial demand.

In mid-September, the Ministry of Economy maintained its full-year growth forecast (excluding sports events) at 1.2%. However, it cautioned that global demand remains below historical averages, particularly due to sluggish economic activity in the eurozone, a key market for Swiss exports.

Germany, Switzerland’s largest trading partner in Europe, narrowly avoided recession in the third quarter, posting modest growth of 0.2%, according to Destatis. This unexpected resilience contributed to a stronger-than-anticipated 0.4% growth in the eurozone, as reported by Eurostat.