Switzerland’s GDP grew by 0.3 % in the second quarter of 2022, following an increase of 0.5 % in the first quarter*. The recovery continued as expected. The value added of the services sector increased considerably following the lifting of the pandemic restrictions. Private consumer spending showed strong growth. Manufacturing value added fell slightly.
Most of the public health restrictions to contain the coronavirus were lifted at the beginning of April as the situation status returned to normal. The service industries that were most affected made a noticeable recovery in the second quarter. The accommodation and food services sector (+12.4 %) achieved the strongest growth. Inbound tourism in particular continued to recover with a marked increase in overnight stays, especially by European and US guests. The value added by this sector in the second quarter was nonetheless around 10 % down on pre-crisis levels. The lifting of restrictions also contributed to an increase in value added for the arts, entertainment and recreation sector (+1.4 %)**; however, adjusted for sporting events it was still 17 % below pre-crisis levels. Increased mobility among the population brought transport and communication (+4.4 %) into positive figures, exceeding the pre-crisis levels by around 3 %.
Only two service sectors saw a decline in value added in the second quarter: financial services (–1.5 %) and trade (–2.1 %), the latter mainly attributable to food retailing and wholesale trade. The relatively broad-based growth of the services sector was accompanied by rising services exports (+5.0 %). ***
With the lifting of the pandemic restrictions, private consumer spending (+1.4 %) picked up strongly after a subdued 2021/22 winter half-year. In particular, households increased their consumer spending on hotels and restaurants as well as other services. Investment in equipment (+2.6 %) also rose significantly after a negative previous quarter. Overall, domestic demand saw robust growth, accompanied by a sharp rise in imports (+2.1 %).**** Construction investment (–0.2 %) was the only component of domestic demand to contract again, in line with the downturn in the construction sector (–1.7 %). Investment (–0.2 %) was the only component of domestic demand to contract again, in linewith the downturn in the construction sector (–1.7 %).
In manufacturing (–0.5 %), value added declined slightly after seven quarters of strong, above-average growth. This was mainly driven by the chemical and pharmaceutical industry, which was confronted with declining exports. However, the other industrial sectors, which are typically more sensitive to the economic cycle, recorded modest growth. Exports of goods***** (–11.5 %) also fell sharply overall on the back of a sharp contraction in transit trade.
The Federal Statistical Office (FSO) and the State Secretariat for Economic Affairs (SECO) undertook an extraordinary partial revision of Switzerland’s national accounts (annual and quarterly) in summer 2022. This was prompted by a prior revision of the Swiss National Bank’s balance of payments data. The revision concerns data from 1980 up to the current financial accounts. Together with the revised quarterly data and the first calculation of GDP in the second quarter of 2022, SECO is publishing expenditure-side GDP data adjusted for sporting events for the first time.
Further information on GDP in the second quarter, the revision carried out and the data adjusted for sporting events can be found in the autumn 2022 edition of Konjunkturtendenzen (Economic situation in Switzerland) at http://www.seco.admin.ch/gdp.
* Quarter-on-quarter growth rates in real terms. Adjusted for sporting events, GDP grew by the same 0.3% in the second quarter and by 0.2 % in the first quarter.
** Adjusted for sporting events: +3.0 %
*** Adjusted for sporting events: +4.9 %
**** Goods and services excluding valuables. Adjusted for sporting events: +2.5 %
***** Excluding valuables
3 Manufacturing: Noga 10–33; Construction: Noga 41–43; Trade: Wholesale and retail trade; Repair of motor vehicles, Noga 45–47;
Accomodation, food: Accommodation and food service activities, Noga 55–56; Finance, insurance: Financial and insurance activities,
Noga 64–66; Business services: Real estate services; professional, scientific and technical activities; administrative and support
service activities, Noga 68–82; Public administration: Public administration and defence; compulsory social security, Noga 84; Health,
social activities: Human health and social work activities, Noga 86–88; Arts, entertainment, recreation: Arts, entertainment and
recreation , Noga 90–93. Other: Agriculture, forestry, fishing, Noga 01–03; Mining and quarrying, Noga 05–09; Energy and water supply,
waste management and remediation activities, Noga 35–39; Transportation and storage, Noga 49–53 Information and communication,
Noga 58–63; Education, Noga 85; Other service activities, Noga 9496;
Activities of households as employers, Producing activities of
households for own use, Noga 97–98; taxes and subsidies on products.
4 Valuables contain: precious metals, jewellery and gems, works of art and antiques and nonmonetary gold.