In Q2 2010, Swiss real GDP (sa) rose a strong 0.9% q/q after the 1.0% q/q seen in Q1 (revised up from 0.4% q/q reported earlier). The annual GDP growth rate rose to 3.4% from 2.3% previously. Looking at the GDP breakdown, the biggest gain was in gross fixed capital, which rose 2.1% q/q.

Final consumption and household consumption remained unchanged q/q, while government consumption fell 0.1% q/q. Exports increased 1.7% q/q, imports were up 4.6% q/q. Gross fixed investment added 0.4pp to the q/q GDP growth rate, while changes in stocks added 1.5pp, with net trade subtracting 1.1pp.
 
Taking into account the latest revisions of the GDP series, we forecast growth in Switzerland could now approach 2.7% y/y in the current year (up from 2.0%). We note, however, that Q2 presumably marked the cyclical peak, as suggested by the latest leading business indicators.


source: BarCap