Swiss economy shrank unexpectedly in 2004

3. March 2005, Swissinfo
Economy contracts but no new recession

The Swiss economy shrank unexpectedly in the last quarter of 2004, with gross domestic product (GDP) falling for the first time in more than a year.

But federal economists say the negative development is in line with world trends and does not spell the start of a new recession.
The State Secretariat for Economic Affairs (Seco) said on Thursday that compared with the previous quarter GDP fell by 0.1 per cent ? the first drop after five consecutive quarters of growth.

It said the cooling down of the economy was the result of a slowdown in capital investment, only moderate growth in consumer spending and disappointing export figures.

But it said that compared with the same quarter in 2003, the economy had actually grown by 1.2 per cent.

In a statement, Seco described the drop in GDP as a “temporary halt in growth”.

“In line with a weakening global economy, the Swiss economy showed a significant cooling down in the fourth quarter of 2004,” it said.

“But this should just be a temporary halt in growth and not the start of a new downturn.”

immer wieder…
NZZ