The Swiss economy only grew slightly in the fourth quarter of 2023. This continued the below-average growth of the previous quarter. The real gross domestic product (GDP) increased by 0.3 percent in the period from October to December 2023 compared to the previous quarter.
In the third quarter, the local economy also grew by 0.3 percent, as the State Secretariat for Economic Affairs (Seco) announced. The value for the fourth quarter is within the estimates. Economists surveyed by the AWP news agency had forecast values of +0.1 to +0.3 percent.
Legend: The economy is still growing. KEYSTONE/Archive/Steffen Schmidt
The individual sectors and usage components developed differently, as Seco writes. For example, value added in the manufacturing sector, i.e. classic industry, fell slightly (-0.1%) after a positive previous quarter. The construction industry also declined slightly (-0.2%).
Below-average growth in private consumption
The service sector, on the other hand, once again provided significant support for GDP growth. As foreign tourism continued to recover, the hospitality industry achieved a significant increase in added value (+3.5%), according to Seco.
According to the information, private consumption grew slightly below average (+0.3%), supported by the areas of housing, health as well as mobility and foreign travel. Investment in equipment fell clearly at -2.5 percent.
Significantly slower growth in 2023 as a whole
For the first time, Seco has also provided a (provisional) estimate of GDP development for the full year 2023. Accordingly, the seasonally, calendar and sporting event adjusted GDP grew by 1.3 percent in 2023 after 2.5 percent in the previous year.
The slowdown in growth is related to the normalization in the aftermath of the Corona crisis, according to Seco. In addition, the challenging international environment had a negative impact on economic development. Without adjusting for sporting events, GDP growth will be 0.7 percent for 2023 after 2.6 percent in the previous year. The license income for larger sporting events, which often take place in Switzerland, is not deducted here.