Swiss economic growth accelerated unexpectedly in the first quarter of 2013 as robust consumer spending and construction investment offset the negative impacts from the strong franc and continued weakness in the euro area economy.
Gross domestic product increased 0.6 percent quarter-on-quarter on a seasonally adjusted basis in the first three months, the State Secretariat for Economic Affairs (SECO) said Thursday.
The outcome was stronger than the upwardly revised 0.3 percent gain in the fourth quarter of 2012 and was better than economists' forecast for zero growth.
"Positive contributions to growth came from private consumption, investments in construction and from the trade balance," SECO said in the report.
Private consumption expenditure grew 0.6 percent quarter-on-quarter in the first quarter, boosted by spending for healthcare and housing.
Investment in construction expanded 0.3 percent. However, this was offset by a 0.8 percent contraction in investment in fixed assets and software. Government spending fell 0.9 percent.
SECO said that the value added on the production side increased in a number of sectors, including construction and financial sectors and in some non-financial private and public-sector services.
Export of goods, excluding precious metals and art materials, shrank 0.2 percent quarter-on-quarter in the first quarter, while imports fell 2.1 percent. However, the agency said that the foreign trade outcome was distorted somewhat by the introduction of the new system of international electricity trading.
Year-on-year, GDP grew 1.1 percent in the first three months of 2013, after gaining 1.4 percent in the fourth quarter. The annual growth rate was forecast to ease to 1 percent.
SECO forecasts the economy to grow 1.3 percent in 2013 and 2.1 percent in 2014. The Swiss National Bank anticipate growth of 1-1.5 percent this year.
The SNB's minimum exchange rate of CHF 1.20 per euro, imposed in 2011, has been shielding the economy from the impact of currency appreciation as well as weak demand from Europe.
However, SNB President Thomas Jordan last week signaled that the central bank may consider implementing negative interest rates or move to adjust the franc cap to cool currency gains.
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