(Bloomberg) -- Switzerland's economy grew last quarter at the quickest pace since the nation abolished its currency cap.
Exports helped to boost growth, suggesting the economy is enjoying the positive spillover effects of the pick up in the euro area. The currency region, Switzerland's biggest trading partner, is growing at the fastest pace in a decade.
Investment increased in the quarter, as did spending by consumers and the government, the State Secretariat for International Economic Affairs said on Thursday. Overall gross domestic product was 0.6 percent higher, up from the 0.4 percent in the previous three months.
“It's finally a decent result that fits better to the upbeat sentiment we've seen,” said Alexander Koch, an economist at Raiffeisen Schweiz, adding that the components data showed momentum was becoming more broad based.
Exports are also getting help from the weaker franc, which has fallen some 8 percent against the euro this year. The economy suffered a setback in early 2015 when the Swiss National Bank gave up its minimum exchange rate, sending the franc surging as much as 41 percent against the single currency.
Click here to see a breakdown of Swiss third quarter GDP.
“At the moment, the recovery is very much driven the strong export dynamics, but with the solid global economy and the increasing utilization of capacity, the recovery on the export side should boost the domestic economy as well,” Koch said.
--With assistance from Joel Rinneby Joshua Robinson and Paul Gordon
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net.
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss
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