Private consumption rose once again in the fourth quarter and was 0.4% higher than the previous quarter. With exception of the “Other” category, two thirds of which is financial services and insurance, consumption was higher in all categories compared to the previous quarter. Significant growth came from the areas of health care as well as food and beverages. For the first time in five quarters, the economically sensitive areas of shoes and clothing have once again started develop positively. Government consumption rose by a significant 1.7% in the fourth quarter.

Gross fixed capital formation rose by 1.4% in the fourth quarter, which can mostly be traced to the expansion of investment in equipment and software (+3.9%). Investments in metal products and machinery were responsible for the increase. Construction investment declined by 1.5% compared to the previous quarter.

With an increase of 3.2%, goods exports (excluding valuables) have now grown for the second quarter in a row. The chemicals and related products category as well as precision instruments, watches, and jewellery contributed largely to export growth. Areas hit hard by the crisis like the metals, machinery, equipment, and electronics categories were still stagnant at the end of 2009. Goods imports fell slightly in the fourth quarter (-0.2%). Service exports declined 0.2% and imports increased by 1.8%.

On the production side, the encouraging developments in the fourth quarter of 2009 have fairly broad support. After a sustained period of weakness, the sector dominated by financial services bounced back with a 1.1% increased in value added. Value added also expanded by 1.1% in the construction industry. Value added also increased in the sector dominated by public services (+0.9%), the trade, hotel, transport, and communications sector (+0.6%), as well as the agriculture sector (+1.5%). Only the industry dominated sector stagnated.

The GDP deflator expanded by 0.1% compared to the same quarter in the previous year. The consumption deflator declined for the third time in a row (-0.4%). Investment prices also sank once again (capital expenditures: -2.2%; construction investments: -1.3%). Export prices were 4.1% lower than corresponding levels for the previous year with import prices even declining by 5.3%.

Based on the outcomes of the quarterly estimates the yearly average decline in real gross domestic product for 2009 was 1.5%. At current prices GDP fell by 1.2% and the GDP deflator grew slightly by 0.3%. The trade balance in goods contributed -1.3 percentage points to the total GDP decline of 1.5%. Since 1980 the boost provided by goods traffic was only weaker in 1986 and 1987. The trade balance for services also contributed to the negative GDP trend in 2009 (-1.4 percentage points). The growth in consumption (government and private households) managed to soften recessionary tendencies and made a positive contribution to GDP.

* Unless otherwise stated, the percentage changes listed here refer to the previous quarter from seasonally and price adjusted figures (not annualised). «Real» is used to describe the formulation «chain-linked quarterly estimates compiled at the average prices of the previous year, reference year 2000».

Gross domestic product in fourth Quarter 2009