The FINANCIAL — Switzerland’s economy stagnated in the third quarter, as the Alpine country’s exports continued to suffer the consequences of a stronger local currency, according to data published on December 1.
Swiss gross domestic product in the three months through September was flat compared with the previous quarter, and rose 0.8% from the same period last year, according to data published by the Federal Department of Economic Affairs, Education and Research.
Economists had expected GDP to grow 0.1% from the previous quarter, and to grow 0.8% compared with the quarter last year, according to Nasdaq.
Switzerland’s export-driven economy has been stung by the increased strength of the Swiss franc, which has made gains against the euro following a Swiss National Bank decision in January to stop capping the currency’s value. That, in turn, has made Swiss exports more costly in eurozone markets.
On December 1, the government reported that Swiss exports managed an overall gain in the third quarter of 0.5% compared to the prior, second quarter, thanks to chemical and pharmaceutical exports. However, other export categories, including the Swiss mainstay of watches, remained depressed, according to the data.
Compared with the same quarter last year, exports declined 0.9%, according to the data.
Private consumption rose 0.4% in the quarter from the previous second quarter, while investment in equipment rose 0.2% , according to the data. Investment in construction dipped 0.9%, while general government consumption rose 1.8%.
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