Swiss economy posts surprise growth, skirting recession
ZURICH (Reuters) - Switzerland's economy unexpectedly grew in the second quarter, skirting a recession as the country's exporters weathered pressure from a strong franc better than some had expected.
The economy grew by 0.2 percent from the previous quarter, the State Secretariat for Economic Affairs (SECO) said on Friday, topping the most optimistic forecast in a Reuters poll of 12 analysts.
The poll consensus was for the $690 billion Swiss economy to have shrunk 0.1 percent, which would have marked the first back-to-back quarterly contractions - equating to a recession - in six years.
Imports fell more than exports while consumer spending and investments in machinery and construction rose. Exports in the watch, jewellery and pharmaceutical industries made positive contributions, SECO said.
"The economy is displaying strong resilience in digesting the strong franc appreciation," said Janwillem Acket, chief economist at Julius Baer.
Switzerland's currency soared after the Swiss National Bank removed a cap of 1.20 against the euro in mid-January.
The cap had been in place since September 2011, largely to protect the export-reliant economy, and the currency's subsequent gains led economists and the SNB to slash growth forecasts.
The franc edged up to 1.0875 per euro after the data.
Economists said the numbers did not mean the Swiss economy was now in the clear.
"The dive in imports could be a sign that production is sinking," Acket said, pointing to the possibility that manufacturers might have imported fewer supplies. "So that may mean we could have a very challenged situation."
Daniel Hartmann, senior economist at Bantleon, said the data represented a "technical reaction" caused mainly by the counterbalance in foreign trade.
"We expect GDP growth of 0.9 percent for the full year (2015) and of 1 percent for 2016," Hartmann wrote in a note.
(Reporting by Joshua Franklin and Brenna Hughes Neghaiwi; Editing by Michael Shields and John Stonestreet)
