Accelerated Growth: Switzerland's Economy Surprises with Q2 Performance

Robust Expansion Exceeds Expectations

The Swiss economy exhibited greater resilience than anticipated, expanding at a slightly faster pace in the second quarter of 2024.

According to the State Secretariat for Economic Affairs (SECO), Switzerland's gross domestic product (GDP) growth reached 0.5% in Q2, surpassing initial forecasts.

Factors Driving Growth

• Strong consumer spending
• Increased exports
• Robust construction sector

Consumer Spending

Household spending remained robust, supported by rising incomes and low interest rates.

Retail sales and hospitality services experienced significant growth, indicating increased consumer confidence and discretionary spending.

Exports

Export sectors performed well, particularly in the pharmaceutical, chemical, and machinery industries.

Increased demand from major trading partners, such as the European Union and China, contributed to export growth.

Construction Sector

The construction sector continued to expand steadily, fueled by ongoing infrastructure projects and residential building.

Low interest rates and government incentives supported investment in construction.

Implications for the Future

The stronger-than-expected growth in Q2 points to a solid economic outlook for Switzerland.

However, uncertainties remain, including the impact of the global economic slowdown and potential trade tensions.

SECO expects economic growth to continue in the coming quarters, albeit at a slightly slower pace.