Swiss economy stagnates during second quarter

ZURICH, Sept 4 (Reuters) – The Swiss economy stagnated during the second quarter of 2023, the government said on Monday, with zero growth reported as the slowdown abroad hit the country’s manufacturing sector and goods exports.

Gross domestic product, adjusted for income from sporting events, grew by 0% in the April to June period, down from a 0.9% increase in the first three months of the year.

The figure was below the 0.1% growth rate expected in a Reuters poll.

Manufacturing was the main reason for the slowdown, with a 2.9% contraction in output, as the country’s strong chemical and pharmaceuticals industry posted a decline.

“At the same time, the challenging international environment is weighing on the cyclically sensitive industrial sectors such as mechanical engineering and metal construction, resulting in a second-quarter decline in value added for the rest of industry,” said the State Secretariat for Economic Affairs (SECO).