The Swiss Economy Contracts 0.8% In Q1

Release Explanation: Measures the monetary value of all goods and services produced within a Country's borders in a specific time period. GDP is calculated on an annual basis, is the broadest measure of activity, and the primary gauge of each economy's overall health. It includes all Company and Personal consumption, government outlays, investments, and exports minus imports, that occur within a defined territory.

TheLFB-Forex.com Trade Desk Thoughts: The Swiss economy contracted less than expected in the first quarter. From Q4 2008 to Q1 2009 the economy shrank 0.8%, while compared with the first quarter of 2008, the economy contracted 2.4%. The data for the fourth quarter was revised much lower, to -0.6%, indicating that the economy contracted for three consecutive quarters.

The first quarter data shows that the trade balance had again a negative contribution. Investments rose 0.1% in Q1, while exports contracted by 5.4%, after a similar decline in the previous quarter. Household expenditures still had a positive impact on the quarterly read, even though it was a small amount.

Some earlier forecasts suggested that the Swiss economy would contract by 1.5% in 2009. Compared with the quarterly data from its main trading partners in the Euro-area, Japan and the U.S, the Swiss economy is still looking in a much better shape.

Forex Technical Reaction: The Swissy had a weak reaction to the GDP release. For now, the swissy struggles to break above the Monday's high.

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