Swiss GDP below forecast
2022.11.29 03:25
Swiss GDP below forecast
Budrigannews.com – Official data released on Tuesday showed that the Swiss economy grew at a real 0.2% rate in comparison to the second three months of 2022 and 0.5% year-over-year, which was lower than what the market had anticipated.
The State Secretariat for Economic Affairs (SECO) reported that, in comparison, the second-quarter growth was revised downward by 0.1%.
Reuters polled economists and found that they expected GDP to rise 0.3% quarter-over-quarter and 1.0% year-over-year.In the second quarter, annual growth for the economy was 2.2%.
GDP increased 0.6% year over year in the third quarter, after taking into account large sporting events.
Growth in the quarter was fueled by the domestic economy, which saw consumer spending rise despite relatively high inflation.The pandemic-related slump continued to affect the lodging and food service industry.
SECO stated that the “challenging” international environment held back some of the more cyclical industrial sectors, despite an increase in equipment investment and broad-based growth in the service sector.
The recent market turmoil has been relatively mild for the Swiss economy.
Despite the fact that the economy was doing well, unemployment was low, and inflation was expected to fall next year, the government has stated that it does not believe there is an immediate need for measures to alleviate the burden of rising energy costs.
In October, Swiss consumer price inflation exceeded the Swiss National Bank’s target range of 0-2% for the ninth month in a row, albeit at a slower rate than anticipated.
At the central bank’s quarterly policy review in December, SNB officials have repeatedly hinted at a rate increase.
In September, the government lowered its economic growth projections, citing the “tense energy situation and sharp price increases” as increasing risks.It now anticipates growth of 1% in 2023 and 2.0% this year.
