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Switzerland's economy falters unexpectedly on euro woes

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Construction continues at the site of the Vieux Emosson dam during a visit to the Nant de Drance hydropower plant near the village of Finhaut, close to the border between Switzerland and France in this August 19, 2014 photo. Deep in a Swiss mountain, workers have blasted out a cathedral-sized hole for a power plant that will help keep Europe's lights on, but the profit outlook for the 1.9 billion Swiss franc ($2.1 billion) project has darkened since its construction began in 2008 (REUTERS/Pierre Albouy/Files)

Construction continues at the site of the Vieux Emosson dam during a visit to the Nant de Drance hydropower plant near the village of Finhaut, close to the border between Switzerland and France in this August 19, 2014 photo. Deep in a Swiss mountain, workers have blasted out a cathedral-sized hole for a power plant that will help keep Europe's lights on, but the profit outlook for the 1.9 billion Swiss franc ($2.1 billion) project has darkened since its construction began in 2008 (REUTERS/Pierre Albouy/Files)

REUTERS

Construction continues at the site of the Vieux Emosson dam during a visit to the Nant de Drance hydropower plant near the village of Finhaut, close to the border between Switzerland and France in this August 19, 2014 photo. Deep in a Swiss mountain, workers have blasted out a cathedral-sized hole for a power plant that will help keep Europe's lights on, but the profit outlook for the 1.9 billion Swiss franc ($2.1 billion) project has darkened since its construction began in 2008 (REUTERS/Pierre Albouy/Files)

Switzerland's economy unexpectedly stalled in the second quarter, showing zero growth as trade took a hit from stagnation in its main export market Europe and falling construction spending.

The flatlining data, missing forecasts of a 0.5pc lift from the previous quarter, was the weakest reported by the State Secretariat for Economic Affairs in two years and suggested forecasts for the rest of the year may need to be cut.

The growth prospects of the export-orientated country are closely tied to the fortunes of the Eurozone, where the impact of the crisis in Ukraine is weighing.

"It looks as if in spite of the SNB (Swiss National Bank) actions "when Europe sneezes, Switzerland catches a cold" remains true," said Swissquote Bank economist Peter Rosenstreich.

Irish Independent