Switzerland’s economy stagnated at the end of 2022 despite the modest increase in consumer spending, as the difficult global economic environment reduced exports and manufacturing production.
The State Secretariat for Economic Affairs, or SECO, reported on Tuesday that the gross domestic product experienced stable sequential growth in the fourth quarter after rising by 0.2 percent in the previous three months.
Economic development year over year slowed from 0.9 percent in the third quarter to 0.7 percent.
The expenditure side of the GDP revealed a 0.5% increase in domestic final demand, continuing the momentum from the previous quarter.
As supply bottlenecks decreased in the fourth quarter, equipment and software expenditure increased by 1.7 percent. In comparison, construction investment decreased by 0.5 percent, in line with the industry’s decreased value added.
Spending on both the private and public sectors increased by 0.3% each. Despite the slow growth of retail sales, consumer expenditure on services kept rising.
While exports of services increased 0.8 percent, shipments of products fell by 1.7 percent. Imports of goods and services both decreased at the same period, by 1.5 and 0.6 percent, respectively.
According to preliminary findings for the entire year, Switzerland’s economic growth slowed from 3.9 percent in 2021 to 2.1 percent in 2022. Unadjusted GDP growth was also 2.1 percent, smaller than the 4.2 percent growth recorded in the prior year.
Source: RTT News
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