Swiss economic growth has strengthened

Swiss economic growth continues to pick-up pace. Gross Domestic Product in the fourth quarter of 1999 accelerated to 3.7 per cent, mainly driven by foreign demand.

Swiss economic growth continues to pick-up pace. Gross Domestic Product in the fourth quarter of 1999 accelerated to 3.7 per cent, mainly driven by foreign demand.

The State Secretariat for Economic Affairs in Berne reports that growth for 1999 as a whole was 1.7 per cent, compared to 2.1 per cent the previous year.

A communiqué said that the annual performance had suffered by a first half year still feeling the effects of the Asian crisis. The second half year recorded growth of around three per cent, it added.

Exports of goods and services in the fourth quarter were up by 10.9 per cent in real terms, with goods showing a higher level of performance, while imports increased by 11.8 per cent.

Recovery in the construction industry was showing a consistent trend, with investments increasing by 2.2 per cent in the last quarter.

The latest GDP numbers are above economic analysts’ forecasts, which had ranged from 2.1 per cent to 2.8 per cent for year on year growth.

The Swiss National Bank has said it will take strong economic growth into account when it formulates policy for the second quarter later this month but has already taken this into consideration in recent rate decisions.

From staff and wire reports