Zurich: Switzerland’s economy abruptly went into reverse in the third quarter, contracting by 0.2 per cent, with exports tumbling and even the country’s vaunted financial sector seeing growth halt.
“The strong, continuous growth phase enjoyed by the Swiss economy for one and a half years was suddenly interrupted,” said the State Secretariat for Economic Affairs (SECO).
“Switzerland is thus following the significant economic downturn seen at the same time in other European countries, particularly Germany,” it added in its statement.
Germany, Europe’s powerhouse, also registered a 0.2 per cent drop in the third quarter, while other European economies have seen growth slow as global uncertainty mounts due to threats by the United States to rip up trade deals and slap tariffs on imports.
Switzerland’s 0.2 per cent drop in gross domestic product in July through September, compared with the previous three months, was due in considerable part to a drop in exports.
Switzerland’s economy is heavily geared towards exports, and total exports of goods slumped 4.2 per cent.
Even the financial sector recorded a drop in value added and in its exports of services.
Dry weather also caused a drop in hydroelectric production. — AFP
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