Switzerland GDP grows 1.5% in Q2, exceeding forecasts

Switzerland's Gross Domestic Product (GDP) grew by 1.5% in the second quarter compared to the previous quarter, significantly exceeding economist forecasts which had predicted growth between 0.2% and 0.4%. This expansion was largely driven by the industrial sector, particularly chemistry and pharmaceuticals, alongside progress in the services sector.

However, analysts note that this growth figure may be influenced by the expanding public sector. Data from the Institute for Swiss Economic Policy (IWP) indicates that the state is growing faster than the private economy. Between 2011 and 2022, public sector employment rose by 18%, compared to 14% in the private sector.

Furthermore, state personnel costs have increased by 35% since 2008, outpacing population growth of 16%. Research suggests a wage premium exists for public employees; at the federal level, researchers calculated an average wage premium of 12% compared to private-sector workers with similar qualifications.