ZURICH: The Swiss economy grew more than expected in the first three months of the year thanks to strong private and public consumption, even as exporters tussled with a stubbornly strong franc and crisis in the euro zone.
Compared with the previous three months, gross domestic product rose 0.7 per cent, the State Secretariat for Economics said on Thursday, beating a forecast for flat quarterly growth. Year-on-year, GDP rose 2.0 per cent, also ahead of expectations for a rise of just 0.9 per cent.
Figures for the final quarter of 2011 were revised up to show the economy expanded by 0.5 per cent from the third, compared with an originally reported increase of 0.1 per cent.
Despite the Swiss National Bank's cap of 1.20 per euro, the safe-haven franc is widely considered overvalued.
The euro zone is Switzerland's biggest trading partner and exports to the bloc have been particularly hard hit.
Exports of goods and services fell 0.4 per cent compared to the previous three months but were up 0.7 per cent on the year.
The KOF leading indicator for the Swiss economy rose for the third month in a row in May, beating even the most optimistic forecasts and bucking a slew of more downbeat data as the euro zone crisis weighs.
Greece leaving the euro would pose a new challenge to the country, which earns every second franc abroad.
The SNB has threatened to impose capital controls in addition to its currency cap, if the economic situation deteriorates.
indiatimes.com
Compared with the previous three months, gross domestic product rose 0.7 per cent, the State Secretariat for Economics said on Thursday, beating a forecast for flat quarterly growth. Year-on-year, GDP rose 2.0 per cent, also ahead of expectations for a rise of just 0.9 per cent.
Figures for the final quarter of 2011 were revised up to show the economy expanded by 0.5 per cent from the third, compared with an originally reported increase of 0.1 per cent.
Despite the Swiss National Bank's cap of 1.20 per euro, the safe-haven franc is widely considered overvalued.
The euro zone is Switzerland's biggest trading partner and exports to the bloc have been particularly hard hit.
Exports of goods and services fell 0.4 per cent compared to the previous three months but were up 0.7 per cent on the year.
The KOF leading indicator for the Swiss economy rose for the third month in a row in May, beating even the most optimistic forecasts and bucking a slew of more downbeat data as the euro zone crisis weighs.
Greece leaving the euro would pose a new challenge to the country, which earns every second franc abroad.
The SNB has threatened to impose capital controls in addition to its currency cap, if the economic situation deteriorates.
indiatimes.com
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