Swiss economy contracts most since 1992

Data released by the State Secretariat for Economic Affairs or SECO showed that gross domestic product or GDP fell 0.8% sequentially in the first quarter following a downwardly revised 0.6% contraction in the fourth quarter. That was the worst performance since the final quarter of 1992. Meanwhile, economists had forecast the economy to shrink 1.5%. GDP declined for the third straight quarter, while two consecutive quarters of negative GDP defines a recession. On an annual basis, the real GDP dropped 2.4% in the first three months of 2009. Economists had forecast a 1.7% contraction after a 0.6% fall in the final quarter of 2008.Compared to the fourth quarter, the pace of decline in exports slowed in the first quarter. Total exports fell 5.4% after an 8.7% contraction in the previous quarter. Exports of goods were down 6.6%, more pronounced than a 2.3% fall in exports of service. At the same time, total imports recorded zero growth in the first quarter.