Gross domestic product in the third quarter of 2022: growth underpinned by domestic economy in Switzerland
Bern, 29.11.2022 – Switzerland’s GDP grew by 0.2 % in the third quarter of 2022, following an increase of 0.1 % in the second quarter.* Growth has largely been driven by the domestic economy. The service sector delivered broad-based growth. Meanwhile, some of the more cyclical industrial sectors were held back by the international environment.
Despite relatively high inflation rates, private consumer spending (+0.7 %) again increased above average in the third quarter. In particular, spending was up on housing and energy, leisure and travel, and non-food purchases. The value added in the retail trade increased accordingly; likewise, trade as a whole (+2.3 %) again registered substantial growth after a run of four negative quarters. The accommodation and food services sector (+2.8 %) continued to recover from the pandemic-related slump, buoyed by an upturn in international tourism among other things. Other service sectors such as healthcare (+0.7 %) and business-related services (+0.6 %) also registered a significant increase in value added. In contrast, value added in the financial services sector declined (−4.4 %).
Investments in equipment (+2.1 %) were another contributory factor to the robust growth in domestic final demand (+0.6 %). Some easing in international supply bottlenecks allowed for extensive investment in vehicles; there was also an increase in investment in IT, in particular. In line with the pick-up in domestic demand, there was also a sharp rise in imports (+4.9 %).**Construction investment (−2.0 %) contracted yet again – the only component of domestic demand to do so – and with that also the value added in the construction industry (−2.2 %). Turnover was down in building construction in particular but also in civil engineering and other construction site work.
In manufacturing (−0.2 %), value added dipped slightly in the third quarter. While the chemical and pharmaceutical industry returned to substantial growth after two negative quarters, other sectors were increasingly being held back by a challenging international environment. The more cyclical industrial sectors experienced a downturn in value added, as reflected in declining exports of machinery and metals, for example. The nonetheless strong growth in total exports*** (+5.9 %) is largely explained by a sharp increase in transit trade.
In manufacturing (−0.2%), value added dipped slightly in the third quarter. While the chemicaland pharmaceutical industry returned to substantial growth after two negative quarters, other sectors were increasingly being held back by a challenging international environment. The
* Quarter-on-quarter growth rates in real terms. Adjusted for sporting events, GDP grew by the same 0.2 % in the third quarter and by 0.1 % in the second quarter. Further information on quarterly GDP can be found in Konjunkturtendenzen (Economic situation in Switzerland) at www.seco.admin.ch/gdp
** Goods and services excluding valuables. Adjusted for sporting events: +4.6 %.
*** Goods and services excluding valuables. Adjusted for sporting events: +5.8 %.