Swiss economy grows more than expected in Q1 on export surge to US

By Mucahithan Avcioglu

ISTANBUL (AA) - Switzerland’s gross domestic product grew 0.8% in the first quarter compared with the previous quarter, driven largely by increased exports to the US, official data showed Monday.

The growth rate was the fastest in three years and exceeded market estimates of 0.7%, according to the State Secretariat for Economic Affairs.

Growth in the chemical and pharmaceutical sector accelerated to 7.5% in the first quarter, fueled by a sharp rise in pharmaceutical exports.

Manufacturing increased 2.1%, while goods exports climbed 5% overall in the first quarter.

"In particular, exports to the US rose sharply, pointing to possible front-loading in connection with US trade policy," the Swiss State Secretariat for Economic Affairs report said.

Conversely, the energy sector shrank 9.4%, impacted by dry winter months and reduced electricity generation from hydroelectric power stations.

Switzerland's exports to the US jumped 17.4% in the first quarter, well above the country's total export increase of 3.6%.

US President Donald Trump imposed a 31% tariff on Switzerland on April 2 as part of a broad “reciprocal” tariff policy but later suspended it and lowered the rate to 10%.