Drugs firms, energy output lift Swiss quarterly economic growth (updated)

Swiss Steel Holding AG

28/11/2019 07:53

(Rewrites with added detail and material)
    By John Revill
    ZURICH, Nov 28 (Reuters) - Rising output from Switzerland's
flagship pharmaceuticals industry and production of
hydroelectric power helped the Swiss economy grow faster than
the neighbouring euro zone in the third quarter, masking a
slowdown in other parts of the economy.
    Swiss GDP increased by 0.4% from the second quarter, the
State Secretariat for Economic Affairs (SECO) said on Thursday,
accelerating from a 0.3% rise in the second quarter and ahead of
the 0.2% level in Refinitiv estimates.
    The improvement was led by a 1.2% increase in manufacturing,
where the chemicals and drugs sector saw a significant increase
in value added and exports, SECO said.
    Industry giants Novartis  NOVN.S  and Roche  ROG.S  both
raised their guidance this year on the back of increased demand
for their gene therapies and heart and cancer drugs.
 urn:newsml:reuters.com:*:nL5N27715S urn:newsml:reuters.com:*:nL5N2710OE
    Although the pharmaceuticals sector reported low single
digit growth in the quarter, there was a slight decline in
traditional manufacturing, SECO said.
    Switzerland's traditional metals and electrical
manufacturing base has struggled, with industry association
SwissMEM reporting falling orders for five consecutive quarters.
 urn:newsml:reuters.com:*:nL8N27V1NB
    Another contributor to Swiss growth was the country's energy
sector, which grew by 8.2% in the third quarter.
    Warm weather increased the melting in the Swiss Alps,
boosting the output and exports from water power stations.
    Overall, the increase in Swiss gross domestic product was
double the 0.2% rate seen in the euro zone, Switzerland's
biggest export market.
   Year-on-year, the Swiss economy grew by 1.1% during the third
quarter, up from the 0.2% rate in the second quarter and ahead
of the 0.8% forecast.

 (Reporting by John Revill; Editing by Riham Alkousaa and Edmund
Blair)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))