Switzerland's GDP grew by 0.2% in the third quarter of 2022, following an increase of 0.1% in the second quarter.
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Growth has largely been driven by the domestic economy. The service sector delivered broad-based growth. Meanwhile, some of the more cyclical industrial sectors were held back by the international environment.
Despite relatively high inflation rates, private consumer spending (+0.7%) again increased above average in the third quarter.
In particular, spending was up on housing and energy, leisure and travel, and non-food purchases. The value added in the retail trade increased accordingly; likewise, trade as a whole (+2.3%) again registered substantial growth after a run of four negative quarters.
The accommodation and food services sector (+2.8%) continued to recover from the pandemic-related slump, buoyed by an upturn in international tourism among other things.
Other service sectors such as healthcare (+0.7%) and business-related services (+0.6%) also registered a significant increase in value added. In contrast, value added in the financial services sector declined (−4.4%).
Investments in equipment (+2.1%) were another contributory factor to the robust growth in domestic final demand (+0.6%).
Some easing in international supply bottlenecks allowed for extensive investment in vehicles; there was also an increase in investment in IT, in particular. In line with the pick-up in domestic demand, there was also a sharp rise in imports (+4.9%).
Construction investment (−2.0%) contracted yet again – the only component of domestic demand to do so – and with that also the value added in the construction industry (−2.2%). Turnover was down in building construction in particular but also in civil engineering and other construction site work.
In manufacturing (−0.2%), value added dipped slightly in the third quarter. While the chemical and pharmaceutical industry returned to substantial growth after two negative quarters, other sectors were increasingly being held back by a challenging international environment.
The more cyclical industrial sectors experienced a downturn in value added, as reflected in declining exports of machinery and metals, for example. The nonetheless strong growth in total exports (+5.9%) is largely explained by a sharp increase in transit trade. ■
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