Gross domestic product in the 3rd quarter of 2016

Bern, 02.12.2016 - Switzerland's real gross domestic product (GDP) has remained almost unchanged in the 3rd quarter of 2016 (+0.0%).* Consumption has contributed very little to growth. Investment in construction and equipment has supported GDP growth, while the trade balance in goods and services had a negative effect. On the production side, the growth of value added has been below its historical mean in most sectors, with trade as well as health and social work activities having a negative impact. Manufacturing and the accommodation and food service industry have made positive contributions. Real GDP has grown by 1.3% in comparison to the 3rd quarter of 2015.

Consumption expenditure of households and non-profit institutions serving households has risen by 0.1% in the 3rd quarter of 2016. Expenditure on transport and mobility has increased, whereas spending on housing and energy has decreased. Health expenditure has risen only very slightly. General government consumption has dropped marginally (-0.1%). Conversely, investment in equipment has climbed modestly (+0.5%), driven primarily by research and development as well as machinery. Investment in construction has also increased (+0.5%) after two negative quarters. Overall, final domestic demand has underpinned GDP growth.

Exports of goods have fallen by 0.2% in the 3rd quarter of 2016. Precision tools, watches and jewellery in particular have taken a downturn, while chemical and pharmaceutical exports have continued to grow. Exports of services have also declined slightly (-0.8%). Imports of goods2 have risen by 0.2% in the 3rd quarter, underpinned by the chemicals and pharmaceuticals as well as vehicles categories, while imports of services have stagnated (+0.0%). Overall, the trade balance in goods and services has had a negative impact on GDP growth.

On the production side of GDP, value added has remained practically unchanged in many sectors in the 3rd quarter of 2016, including business services (+0.0%) and public administration (+0.1%). Manufacturing (+0.9%) and the accommodation and food service industry (+0.3%) have achieved an increase in value added. However, value added in trade (-0.4%), financial services (-0.4%) as well as health and social work activities (-0.4%) have suffered a downturn.

The GDP deflator*** has fallen by 0.6% in comparison to the 3rd quarter of 2015. The deflators for private household consumption and investment in construction have declined by 0.3% and 0.4% respectively, while that for investment in equipment has gone up by 0.4%. There has also been a fall in prices with respect to exported goods and services**** (-0.7%), although this is less marked than in previous quarters. Import prices4 (+1.0%) have continued to rise.

* Unless stated otherwise, percentage changes with respect to the previous quarter (not annualised), calculated on the basis of chained series, price, seasonal and calendar adjusted values are reported.
** Excluding non-monetary gold and valuables
*** The comparisons with the previous year which are used in particular for the comments on the development of the price indices are based on the changes in the original figures over the previous year (before seasonal and calendar adjustments).
**** Total exported/imported goods and services excluding non-monetary gold and valuables

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