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Swiss economic growth flat in Q4 as exports and manufacturing drop

Published 02/28/2023, 03:11 AM
Updated 02/28/2023, 03:16 AM
© Reuters. FILE PHOTO: Shoppers walk along the street after the Swiss government relaxed some of its COVID-19 restrictions, as the spread of the coronavirus disease continues, at the Bahnhofstrasse shopping street in Zurich, Switzerland March 1, 2021. REUTERS/Arnd W

ZURICH (Reuters) - The Swiss economy showed no growth in the fourth quarter of 2022, the government said on Tuesday, as a "challenging international situation" hit manufacturing and exports.

The 0% growth rate missed forecasts and marked a slowdown from the 0.2% increase in the third quarter, said the State Secretariat for Economic Affairs (SECO), which complied the figures.

"While the less cyclically sensitive chemical and pharmaceutical industry recorded further growth.... the other industrial sectors contracted," it said.

Adjusted for large sporting events, gross domestic product (GDP) rose 0.7% year on year in the fourth quarter

The performance was weaker than expected, with economists polled by Reuters forecasting GDP to rise 0.4% quarter-on-quarter and 3.7% year on year.

GDP for 2022 as a whole, when adjusted for sporting events, increased by 2.1%, down from 3.9% in 2021, SECO said. Over the past 20 years, Switzerland's economy has grown by an average of 2.1% each year.

© Reuters. FILE PHOTO: Shoppers walk along the street after the Swiss government relaxed some of its COVID-19 restrictions, as the spread of the coronavirus disease continues, at the Bahnhofstrasse shopping street in Zurich, Switzerland March 1, 2021. REUTERS/Arnd Wiegmann/File Photo

"While economic performance in 2022 was boosted by the recovery from the pandemic, at the same time it was held back by the tense energy situation in Europe and a gloomy international environment," SECO said.

The government, which previously said it expected the Swiss economy to grow by 1.0% in 2023 and 1.6% in 2024, is due to give its latest forecast for 2023 economic growth on March 16.

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