Bern - Switzerland's real gross domestic product fell 0.8 per cent in the first quarter compared with the last of quarter of 2008, the State Secretariat for Economic Affairs
(SECO) reported Tuesday.

When compared with the same quarter of the previous year, the recorded fall in real GDP was 2.4 per cent.

The decrease in exports continued in the first months of 2009, but at a slower pace. Exports of goods fell 6.6 per cent while exports of services dropped 2.3 per cent.

Data from SECO showed the last period of growth for the economy was the first quarter of 2008.

In the fourth quarter of 2008, GDP fell 0.6 per cent.

Switzerland's central bank has taken steps to combat the recession, including dropping interest rates to nearly zero and devaluing the franc to help the export sector.

The government has also pumped money into the economy. A stimulus package proposed this year was worth 700 million francs (652 million dollars) on top of an injection of 980 million in November. Some members of the parliament have said they wanted larger boosts.

The International Monetary Fund projects that Switzerland's economy will shrink 3 per cent on downturns in exports and troubles in the country's financial sector, after it contracted 1.6 per cent last year.

Swiss estimates say unemployment could hit 4.5 per cent this year, from its current, but rising, level of 3.4 per cent.

Some IMF researchers have suggested the Alpine nation may need another stimulus package. News reports last month indicated the government may be gearing up for just that.(dpa)