The Swiss economy expanded by 2.5 percent in 2018, returning to a moderate growth mainly due to manufacturing, according a latest Swiss government report.

The State Secretariat for Economic Affairs (SECO) report released Thursday said the rise in manufacturing followed a breather in the 3rd quarter, and the sector returned to dynamic growth, especially in the chemical and pharmaceutical segment.

"However, other industries also reported turnover increases, such as the watchmaking and precision instrument industry as well as the food industry," noted the report.

Manufacturing benefited from the strong international demand for Swiss products with exports of goods up by 5.6 percent and growing substantially.

The report said the 2.5 percent growth rate for 2018 is still provisional.

"The Swiss economy has achieved growth comparable to that of 2014 (2.4 percent) for the first time," said SECO.

Growth in the first half of 2018 was significantly above average while in the second half of the year, "the economy weakened noticeably both in Switzerland and abroad."

Over the whole of 2018, manufacturing was the most active driver of growth, benefiting from high international demand for Swiss industrial goods.

According to the report, most of the other industries were also able to expand, while trade was a major exception, registering a decline in value added for the first time since 2011.

A slower outlook is forecast for 2019, with more 'normal' growth of +1.5 percent expected by the economists, according to Swissinfo, the international service of the Swiss Broadcasting Corporation.