Geneva  - Switzerland's real gross domestic product (GDP) shrank by 0.3 per cent in the second quarter of the year, compared with the previous quarter.

When compared with the same quarter of 2008, there was a 2-per- cent fall in GDP, according to the State Secretariat for Economic Affairs (SECO).

The fall was less than many economists had expected.

Trade in goods contributed to stability, as the fall in imports was greater than that of exports, SECO reported.

Also, consumption expenditure rose by 0.6 per cent, when compared with the previous quarter, with growth recorded in the housing, energy, furniture, health and telecommunications sectors.

However, sales of food and beverages, clothing and shoes, as well as transport showed a fall.

Switzerland has been in recession since the middle of last year, albeit a less severe one than in many other developed economies. (dpa)