Swiss economy shrinks 0.3 percent

1st September 2009, Comments 0 comments

Switzerland’s economy ministry says on Tuesday the economy shrank by a better than expected 0.3 percent in the second quarter.

Zurich - Switzerland's economy shrank by a better than expected 0.3 percent in the second quarter from the previous three months, official data released by the Swiss economy ministry showed on Tuesday.

Analysts polled by Swiss financial news agency AWP had expected a reduction between 0.4 percent and 1.8 percent in the second quarter.

The economy shrank 0.8 percent in the first three months of 2009, and the improvement signals that Switzerland's recession is beginning to ease due to increased household consumption and government stimulus money.

Exports still shrunk two percent in the second quarter but that compared favourably with a 6.1 percent reduction in the previous quarter.

The data also showed that Switzerland's crisis-hit economy had contracted by two percent in the second quarter on a 12-month comparison.

Switzerland's central bank is forecasting a contraction of up to three percent over the whole of 2009.

AFP / Expatica

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