Swiss Economy Sees Below-Average Growth in Third Quarter of 2024
[Bern, Switzerland] – [November 29, 2024] – The Swiss economy grew by 0.4% in the third quarter of 2024, according to preliminary estimates released by the Swiss State Secretariat for Economic Affairs (SECO) today. This represents a slowdown from the previous quarter’s growth of 0.8%.
Key Points
- Below-average growth: The 0.4% growth in the third quarter was below the average quarterly growth rate of 0.6% recorded in the past five years.
- Export slowdown: Exports of goods and services, which account for a significant portion of Swiss GDP, saw a slowdown in growth to 0.3% from 1.1% in the previous quarter.
- Domestic demand resilient: Domestic demand remained robust, with private consumption and investment both contributing positively to GDP growth.
- Manufacturing and construction decline: The manufacturing and construction sectors experienced a decline in the third quarter, offsetting growth in other sectors such as services and tourism.
- Labor market strength: The labor market remained strong, with unemployment remaining low and wages growing moderately.
Outlook
SECO forecasts that the Swiss economy will grow by 1.5% in 2024, down from the previous forecast of 1.9%. The slowdown is attributed to the weaker global economic outlook, particularly in the eurozone.
Commentary
“The third-quarter GDP data shows that the Swiss economy is facing headwinds due to the global economic slowdown,” said SECO Director Mario Cavigelli. “Export demand is weaker, and the manufacturing and construction sectors are showing signs of weakness.”
“However, the domestic economy remains resilient, supported by strong consumer spending and investment,” Cavigelli added. “The labor market also remains strong, which is a positive sign for overall economic growth.”
Implications
The below-average GDP growth in the third quarter of 2024 could have implications for the Swiss economy, including:
- Lower tax revenues: Slower economic growth could lead to lower tax revenues for the government.
- Reduced investment: Companies may delay or cancel investment projects due to the uncertain economic outlook.
- Increased unemployment: A prolonged economic slowdown could lead to job losses in export-oriented industries.
Conclusion
The Swiss economy saw below-average growth in the third quarter of 2024, due to the weaker global economic outlook and a slowdown in exports. While domestic demand remains resilient and the labor market strong, the overall economic growth forecast for 2024 has been revised down. The government and businesses will need to monitor the situation closely and take appropriate measures to mitigate the impact of the slowdown.
Gross domestic product in the third quarter of 2024: Swiss economy sees below-average growth
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