The Swiss economy contracted at the fastest rate in years in the first quarter, as weakening demand at home reinforced sharply falling export sales.

Gross domestic product declined by 0.8 per cent in the first three months, compared with the previous quarter, in the sharpest three-month drop since 1992. Measured year on year, the decline amounted to 2.4 per cent, the biggest reduction since 1976, according to the state secretariat for economic affairs (Seco).