Swiss GDP grows by 1.5 percent in the second quarter

Economic performance compared to Europe

According to a preliminary assessment, the pillars of the Swiss economy included industry and the services sector. Seco intends to publish detailed sector figures together with the detailed GDP components at the end of the month. Until then, the analysis is based on the aggregated initial value.

Observers rated it positively that the growth cannot be attributed to a single sector alone. Initial indications pointed to a broad economic recovery, also supported by a robust labor market situation. Switzerland's unemployment rate has been at a comparatively low level for months.

Risks for the second half of the year

At the same time, economists pointed to risks: export demand, particularly from neighboring eurozone countries, remains vulnerable to economic fluctuations. If industrial activity in Germany and France continues to deteriorate, this could weigh on Swiss exports in the second half of the year.

The Swiss National Bank is monitoring developments with regard to its monetary policy decisions. Stronger growth can underpin inflationary pressure, but also gives monetary policy more room to maneuver. Inflation in Switzerland had been close to the central bank's target in recent months.

Outlook from bank economists

For the remainder of the year, several bank economists expect the growth path to continue, albeit at a slower pace than in the spring. They see the initial figure as confirmation that Switzerland may have left a phase of economic weakness behind.

The news agency AWP had reported on the upcoming release in the morning. Broad media coverage followed immediately after the publication by Seco. More detailed sector figures are expected with the next release at the end of August.