Switzerland’s economy returned to modest growth in Q1, with GDP expanding 0.1% qoq. While slightly below expectations of 0.2%, the reading marks a rebound from the -0.4% contraction recorded in Q3. According to the State Secretariat for Economic Affairs, performance varied across sectors, with domestic demand providing the main source of support.
The chemical and pharmaceutical industry, a key pillar of the Swiss economy, grew 1.9% after a sharp decline in the previous quarter, aided by pickup in exports. However, the rest of manufacturing contracted by -1.3% amid subdued sales and weaker export performance. Overall, industrial value added stagnated, though goods exports edged up 0.6% following two quarters of decline.
Domestic final demand rose 0.5% and helped stabilize the broader economy. Private consumption expanded 0.4%, while construction investment increased 1.0% on stronger building activity. Retail activity surged 2.0%, supporting a 1.7% rise in trade value added.
