Swiss official output growth slows in third quarter

2nd December 2010, Comments 0 comments

Swiss output growth slowed in the third quarter, as exports of goods and services fell during the period, the Economy Ministry said Thursday.

Gross domestic product grew by 0.7 percent during the period, slowing from the 0.8-percent expansion recorded in the 2nd quarter and the 0.9 percent increase in the first three months of the year.

"GDP growth was particularly spurred by domestic demand. Foreign trade has considerably diminished GDP development, especially when including the services sector," said the ministry.

Overall, exports -- the country's traditional engine for growth, declined 3.0 percent. Goods exports were down 1.2 percent while services exports plunged 7.0 percent.

The Swiss National Bank in September warned that the country will suffer a "marked slowdown" in growth during the second half of 2010 and 2011. It forecasted that the economy would expand by 2.5 percent for the full year.

© 2010 AFP

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