Swiss economy shows robust growth

The Swiss economy is growing faster than anticipated. After several gloomy years at the start of the 1990s, the economy is ending the millennium on an upbeat note.

The Swiss economy is growing faster than anticipated. After several gloomy years at the start of the 1990s, the economy is ending the millennium on an upbeat note.

The rise in consumer spending and a big boost for exports in the third quarter of this year are the main reasons for the positive performance.

Switzerland’s Gross Domestic Product rose by 2.4 percent in the third quarter over the previous quarter, according to a report released by the State Secretariat for Economic Affairs. The figure was the highest quarterly GDP growth rate for nearly two years.

The growth rate for the second quarter was also corrected upwards, from 1.2 percent to 1.8 percent.

An increase in consumer spending by 2.5 percent in the third quarter was the main reason for the strong economic showing. Consumers were spending more on transport and communications, as well as leisure and cultural pursuits, according to the secretariat.

The amount of investment in the previously lacklustre construction sector also continued its upward trend, even if it was not as buoyant as in the second quarter of 1999.

A sharp rise in exports was reported. The second and third quarter figures showed a rise of 9.2 and 8.2 per cent respectively, the biggest growth rates for two years.

Prospects for next year also remain good, says the secretariat. An overall GDP growth rate of 1.3 percent for 1999 is expected to reach 2 percent next year. Previous estimates had put the likely growth rate at 1.8 percent next year.

Unemployment is predicted to fall by half a percent to 2.7 percent in 2000, but the secretariat says inflation is expected to rise, if only marginally. The forecast is for an inflation rate of 1.25 percent next year compared to the current level of 0.8 percent.
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From staff and wire reports