Switzerland's GDP adjusted for sporting events saw no growth in the fourth quarter of 2022 (+0.0%), following a 0.2% increase in the third quarter.
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The challenging international environment curbed manufacturing output and also exports. Domestic demand showed robust growth.
The global economic slowdown took its toll on manufacturing (−0.3%) in the fourth quarter of 2022. While the less cyclically sensitive chemical and pharmaceutical industry (+1.7%) recorded further growth in value added, the other industrial sectors contracted.
This led to lower exports in metals and precision instruments, for example. Overall, exports (−0.9%) posted a significant decline. Imports (−1.1%) also fell considerably, after recording strong growth the previous quarter.
Domestic final demand (+0.5%) maintained the strong momentum of the previous quarter. Investments in equipment (+1.7%) posted an above-average increase.
For example, investment in motor vehicles continued to rise as supply bottlenecks eased.
However, construction investment (−0.5%) dipped further, in line with the decline in value added in the construction sector (−0.2%).
Commercial construction was down in particular, while resi-dential construction showed some signs of recovery for the first time in 18 months.
Finally, both government consumption (+0.3%) and private consumption (+0.3%) recorded growth in the last quarter of 2022 that was slightly below average. While consumer spending on services continued to rise, the development of retail sales was muted.
Value added in retail trade thus stagnated (+0.0%), and growth in trade (+0.4%) remained subdued overall.
Tourism continued to recover from the coronavirus pandemic, with a further increase in the number of tourists coming to Switzerland.
Value added in the accommodation and food services sector (+1.5%) increased yet again but was still 5% below the pre-pandemic level from the end of 2019. Fourth-quarter growth in the transport and communications sector (+0.1%) was tempered by sluggish industrial activity.
While most of the remaining service sectors recorded some growth in the fourth quarter, value added stagnated in business-related services (+0.0%) and declined in financial services (–2.5%).
Switzerland's GDP adjusted for sporting events saw no growth in the fourth quarter of 2022 (+0.0%), following a 0.2% increase in the third quarter. The challenging international environment curbed manufacturing output and also exports. Domestic demand showed robust growth.
The global economic slowdown took its toll on manufacturing (−0.3%) in the fourth quarter of 2022.
While the less cyclically sensitive chemical and pharmaceutical industry (+1.7%) recorded further growth in value added, the other industrial sectors contracted.
This led to lower exports in metals and precision instruments, for example.
Overall, exports (−0.9%) posted a significant decline.
Imports (−1.1%) also fell considerably, after recording strong growth the previous quarter.
Domestic final demand (+0.5%) maintained the strong momentum of the previous quarter. Investments in equipment (+1.7%) posted an above-average increase.
For example, investment in motor vehicles continued to rise as supply bottlenecks eased.
However, construction investment (−0.5%) dipped further, in line with the decline in value added in the construction sector (−0.2%).
Commercial construction was down in particular, while resi-dential construction showed some signs of recovery for the first time in 18 months.
Finally, both government consumption (+0.3%) and private consumption (+0.3%) recorded growth in the last quarter of 2022 that was slightly below average.
While consumer spending on services continued to rise, the development of retail sales was muted . Value added in retail trade thus stagnated (+0.0%), and growth in trade (+0.4%) remained subdued overall.
Tourism continued to recover from the coronavirus pandemic, with a further increase in the number of tourists coming to Switzerland. Value added in the accommodation and food services sector (+1.5%) increased yet again but was still 5% below the pre-pandemic level from the end of 2019.
Fourth quarter growth in the transport and communications sector (+0.1%) was tempered by sluggish industrial activity.
While most of the remaining service sectors recorded some growth in the fourth quarter, value added stagnated in business-related services (+0.0%) and declined in financial services (–2.5%). ■