Swiss Economy Still Pressured by Strong Franc
December 01 2015 - 2:24AM
Dow Jones News
By John Letzing
ZURICH--Switzerland's economy stagnated in the third quarter, as
the Alpine country's exports continued to suffer the consequences
of a stronger local currency, according to data published on
Tuesday.
Swiss gross domestic product in the three months through
September was flat compared with the previous quarter, and rose
0.8% from the same period last year, according to data published by
the Federal Department of Economic Affairs, Education and
Research.
Economists had expected GDP to grow 0.1% from the previous
quarter, and to grow 0.8% compared with the quarter last year.
Switzerland's export-driven economy has been stung by the
increased strength of the Swiss franc, which has made gains against
the euro following a Swiss National Bank decision in January to
stop capping the currency's value. That, in turn, has made Swiss
exports more costly in eurozone markets.
On Tuesday, the government reported that Swiss exports managed
an overall gain in the third quarter of 0.5% compared to the prior,
second quarter, thanks to chemical and pharmaceutical exports.
However, other export categories, including the Swiss mainstay of
watches, remained depressed, according to the data.
Compared with the same quarter last year, exports declined 0.9%,
according to the data.
Private consumption rose 0.4% in the quarter from the previous
second quarter, while investment in equipment rose 0.2%, according
to the data. Investment in construction dipped 0.9%, while general
government consumption rose 1.8%.
-Write to John Letzing at john.letzing@wsj.com
(END) Dow Jones Newswires
December 01, 2015 02:09 ET (07:09 GMT)
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