BRUSSELS (dpa-AFX) - The Swiss economy expanded modestly in the second quarter, as estimated earlier, and higher U.S. tariffs are set to push down growth prospects, the State Secretariat for Economic Affairs said Thursday.
Gross domestic product grew 0.1 percent from the first quarter, unchanged from the flash estimate. Growth softened notably from 0.7 percent in the first quarter.
Industrial value added and exports declined sharply, while the service sector supported broad based growth in the second quarter, the SECO said.
On a yearly basis, economic growth eased to 1.6 percent from 2.0 percent in the first quarter.
Due to higher U.S. tariffs, Switzerland's economy is likely to expand more slowly than previously estimated, particularly in 2026.
The government downgraded its growth outlook for this year to 1.2 percent from 1.3 percent. The projection for next year was trimmed to 0.8 percent from 1.2 percent.
Data showed that manufacturing shrank 2.4 percent as there was a substantial 2.7 percent drop in exports in the second quarter.
Following strong growth in the previous quarter, imports decreased 3.7 percent.
Private consumption gained 0.3 percent and government spending grew more strongly by 0.9 percent.
By contrast, construction investment edged down 0.1 percent, as did value added in the construction sector by 0.4 percent. Investments in equipment declined 0.8 percent.
The biggest declines occurred in frequently volatile areas that are not immediately sensitive to cyclical changes, such as aircraft and research and development, the SECO added.
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