The Swiss economy grew 0.5 percent in first quarter when not adjusted for sporting events, boosted by strength in the chemical and pharmaceutical sector which grew 7.5 percent. Goods exports, in particular to the United States, were up 5.0 percent most likely due to US tariff policy. Today's result is a softer reading than the 0.7 percent flash result.

Exports of services fell -8.2 percent (unadjusted for sporting events) in the first quarter, after a 3.3 percent gain in the fourth, while imports rose 0.6 percent after gaining 0.9 percent the previous quarter.

Expenditures moderated in the first quarter, with private consumption up 0.2 percent quarter after a 0.5 percent increase in fourth quarter which, like other reports, shows a cautious consumer. Government spending also slowed, to 0.4 percent from 0.6 percent during the last three months of 2024.

Acting as a drag was energy production, down 9.4 percent from the fourth-quarter due to a dry winter and a resulting drop in hydroelectric power generation.

The economy expanded 2.0 percent from the first three months of last year, as exports grew 13.2 percent. During that time, private consumption rose 1.6 percent, while the government spent 1.1 percent more compared to the year-ago quarter.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. There is no flash estimate and the first report is typically not issued until around sixty days after the end of the reference quarter. This has the advantage of limiting the size of any future revision and also accommodates the inclusion of the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios.

The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.