Swiss GDP Contracts by the Most Since 2004

Swiss GDP contracted just 0.3% q/q in Q4, far better than our survey median for a 1.0% q/q drop. Meanwhile, the Q3 q/q rate was revised down to -0.1% from a zero rate previously. Meanwhile, y/y GDP was -0.6%, versus a -0.5% median and compared to 1.4% in Q3 (revised down from 1.6%). Hence, even though the Swiss economy was in recession in the second half of 2008, today's figures show that the Swiss economy proved more resilient than most European economies to the credit crunch and the global slowdown last year. Private consumption rose by 0.1% q/q, while public consumption increased by 0.7%, highlighting government efforts to boost the economy. Investment growth continued to contract for a third quarter, down 3.1% q/q in Q4. Exports fell sharply, down 8.1% on the quarter, while imports fell by a smaller 5.8%. Economic activity is now slowing rapidly, as seen in recent sharp drops to the KOF leading indicator and PMI.

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