Fall in exports slow Swiss growth in third quarter

1st December 2011, Comments 0 comments

Swiss economic growth slowed in the third quarter after a fall in exports due to the strong Swiss franc, official figures showed on Thursday.

Between July and September gross domestic product increased by just 0.2 percent compared with the previous quarter which saw a 0.5 percent rise, said a statement from the State Secetariat for Economic Affairs.

The Swiss economy, which has until now been spared from the global economic slowdown, was bolstered by domestic consumption which rose 0.1 percent over the period.

Public spending meanwhile rose 0.6 percent during the three months.

Growth suffered from a marked decline in exports however, with goods exports down 0.9 percent and services dropping 2.7 percent.

Switzerland has seen its international sales hit by the strengthening of the franc against the euro and the dollar since the beginning of the year.

Firms across all sectors have cut more than 10,000 jobs since the summer, AFP analysis has shown, due to the currency's position and the global economic situation.

The Swiss National Bank has forecast a GDP growth of between 1.5 to 2 percent for this year.

© 2011 AFP

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