In the fourth quarter of 2023, Switzerland experienced a GDP growth of 0.3%, maintaining a pace consistent with its below-average growth from the preceding quarter. The Swiss Federal Statistical Office, in its report on Thursday, attributed much of this growth to the services sector, particularly due to the resurgence of tourism following the COVID-19 pandemic.
Among the service industries, the accommodation and food services sector saw a notable increase of 3.5%, while heightened travel activity contributed to a 0.4% rise in the transport and communication sector. Additionally, sectors such as business-related services (0.3%), health and social care (1.4%), and financial services (1%) also noted slight upticks, according to the statistical office’s findings.
However, the report highlighted a dip in value added in manufacturing, which decreased by 0.1%, primarily driven by the chemical and pharmaceutical industry experiencing a decline of -2.3% due to reduced exports. Despite this, the overall GDP growth for 2023 is projected to stand at 1.3% after adjusting for seasonal and sporting events, a decrease from the 2.5% growth observed in 2022.
The statistical office attributed this slowdown in growth to the process of economic normalization following the COVID-19 crisis and the challenging international economic environment. When not adjusted for sporting events, GDP growth for 2023 was at 0.8%, down from 2.7% in the previous year, according to the agency’s data.
These results align with earlier forecasts indicating that Switzerland is expected to continue experiencing slower growth in 2024, largely influenced by the sluggish momentum in the eurozone, which has implications for the Swiss economy.
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