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Swiss economy slows as exports drop, manufacturing stalls

Swiss economy slows as exports drop, manufacturing stalls

The Swiss economy slowed on the last quarter of 2019 as exports dropped and manufacturing activities stagnated, the government’s GDP report released on Tuesday showed.

Switzerland expanded 0.3 percent in the October-December quarter, compared to a growth pace of 0.4 percent in the third quarter. Analysts had predicted a growth of 0.2 percent.

In 2019 as a whole, the economy expanded 0.9 percent, the lowest since 2012, which is far below the Swiss economy’s average of 1.7 percent, the State Secretariat for Economic Affairs (SECO) mentioned.

Exports plunged 0.5 percent during the quarter, while the manufacturing stalled, largely reflecting the slowdown in major European economies.

Data released on Monday showed that manufacturing PMI remained in the contraction zone in February, as it recorded a reading of 49.5.

On March 17, the new 2020 growth forecasts will be out, noting that the previous estimates had referred to a 1.7 percent expansion this year.

As of 09:08 GMT, the euro traded lower versus the Swiss franc at 1.0648, taking into consideration that the EURCHF pair has been moving in a bearish direction since mid-April 2018.

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