Switzerland’s GDP Shrank 0.5% in the First Quarter

The Swiss economy fell back to negative territory in the first quarter as tightened restrictions impacted growth, the federal statistical office reported.

• First-quarter GDP stood at -0.5%, after two consecutive quarters of growth. This compares with -6.8% the same quarter in 2020.
• The biggest decline was recorded in accommodation and food services which fell 30.4% as businesses remained closed and international travel limited.
• Declines were also recorded in arts, entertainment, recreation; trade; health and social activities; construction; and business services.
• Sectors that recorded growth during the quarter include manufacturing up 4.9%; finance and insurance up 1.6%, and public administration up 0.7%.
• In terms of expenditure, exports of services dropped 5.2%, private consumption slipped 3.3%, and imports of services fell 3.2%.
• Industry posted growth in both value added and exports which exceeded pre-crisis levels, as there were fewer interruptions to international supply chains during the period.