The Swiss economy stagnated in the second quarter

The Swiss government said that the Swiss economy is in recession during the second quarter of 2023 with zero growth recorded as the slowdown abroad has hurt the manufacturing sector and exports of goods in the country, and GDP growth represents 0% in the second quarter, down from a 0.9% increase in the first quarter. And below expectations of 0.1% in the second quarter.

Manufacturing was the main reason for the slowdown, with production contracting by 2.9%. The State Secretariat for Economic Affairs (SECO) said, “The challenging international environment is weighing on cycle-sensitive industrial sectors such as mechanical engineering and metal construction, which led to a decrease in the value added of the rest of the industry in the second quarter.” .

Swiss private consumption remained strong in the second quarter, rising 0.4% as spending increased on healthcare, food and housing. The Swiss government said in June it expected the country's economy to grow 1.1% this year followed by a 1.5% increase in 2024.

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