Following a positive previous quarter, value added in manufacturing (−0.1%) dipped somewhat, driven by the chemical and pharmaceutical industry falling into negative territory (−2.3%) on the back of declining exports. The other industrial sectors, however, grew again following two negative quarters. In addition, value added in the energy sector (+4.3%) rose. Hydropower plants in particular contributed to this with their increased electricity production.

The services sector once again provided significant support for GDP growth. As incoming tourism continued to recover, the accommodation and food services sector (+3.5%) recorded significant growth in value added. Increased travel also benefited the transport and communication sector (+0.4%). In addition, business-related services (+0.3%), health and social care services (+1.4%) and public administration (+0.7%) achieved above-average growth rates. Finally, thanks to a strong increase in commission business, financial services (+1.0%) returned to substantial growth after several weak quarters. This was accompanied by a moderate increase in services exports** (+0.7%), similar to goods exports*** (+0.5%).

In the fourth quarter domestic final demand (−0.3%) declined slightly once again. This is mainly due to a significant and broad-based dip in investments in equipment (−2.5%). Construction investment (−0.3%) also fell, and with it value added in the construction industry (−0.2%). Private consumption grew slightly below average (+0.3%), supported by the areas of housing, health, mobility and foreign travel. By contrast, less was spent on food and other goods in the retail sector. In both retail (−0.3%) and trade (−1.0%), value added declined in the fourth quarter. Like domestic demand, imports**** of goods and services were also weak (+0.7%) after adjusting for sporting events.

Initial results for 2023
Provisional results indicate that GDP growth in 2023 was 1.3% adjusted for seasonal, calendar and sporting events, after 2.5% in the previous year. The slowdown in growth is related to the process of normalisation following the COVID-19 crisis. The challenging international environment also weighed on economic development.

The unadjusted GDP grew 0.7% in 2023, after +2.6% in the previous year.*****

Note
The Swiss National Bank introduced a new current account survey as of the first quarter of 2023.****** It is possible that the data available for the fourth quarter will be revised to a greater extent than usual at a later date. Data items from the current account are used at various points in calculating the Swiss National Accounts. Therefore, the possibility of greater revisions than usual over the coming quarters cannot be ruled out.

Further information on GDP in the fourth quarter can be found in the spring 2024 edition of Konjunkturtendenzen at www.seco.admin.ch/gdp.

*To facilitate cyclical interpretation, this press release provides quarter-on-quarter growth rates in real terms, seasonally adjusted and (where applicable) adjusted for sporting events. The adjustment for sporting events concerns GDP, the 'arts, entertainment and recreation' sector, and service exports and imports. Further information on the adjustments for sporting events can be found at www.seco.admin.ch/gdp under ‘Documents’. Not adjusted for sporting events: +0.3% in the fourth quarter of 2023 and +0.3% in the third quarter of 2023.
**Not adjusted for sporting events: +1.7%.
***Excluding valuables.
****Goods excluding valuables. When not adjusted for sporting events, imports of goods and services increased by 0.7% in the fourth quarter.
*****Further information on the impact that international sporting events have on Swiss GDP can be found at https://dievolkswirtschaft.ch/de/2023/02/warum-die-wm-in-katar-das-schweizer-bip-erhoeht/ (in German and French).
******https://data.snb.ch/en/topics/aube/doc/changerev_aube#rev_aube_nlbe.

Gross domestic product in the fourth quarter of 2023: Swiss economy again shows moderate growth