Now Reading: Swiss Q2 GDP jumps 1.5%, fastest growth since 2021
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Swiss Q2 GDP jumps 1.5%, fastest growth since 2021
Switzerland's economy grew 1.5% quarter-on-quarter in the three months to June, the fastest pace since the third quarter of 2021, the country's economy ministry SECO said on Friday. The industrial sector drove…
The Story in Brief
Switzerland's economy grew 1.5% quarter-on-quarter in the three months to June, the fastest pace since the third quarter of 2021, the country's economy ministry SECO said on Friday. The industrial sector drove the expansion, led by chemicals and pharmaceuticals. SECO said services also grew, with data adjusted for sporting events.
Pantheon Macroeconomics economist Ankita Amajuri attributed much of the surge to front-running of drug exports to the U.S. ahead of tariffs of up to 15% on pharmaceuticals that took effect on July 31. The Swiss franc has weakened against the euro since March. The KOF economic barometer rose above its Q2 average in July, though activity is expected to soften in the second half of the year.
The Indian Opinion
The narrative that Switzerland is uniquely insulated from global turmoil overlooks the role of tariff front-loading in this spurt. The growth is partly borrowed from future quarters. Meanwhile, the safe-haven Swiss franc remains a drag on exporters. The true test will come with the September 3 breakdown and whether domestic demand can hold up once the pharmaceutical tailwind fades.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
