Here, $\texttt{x = 3}$.
So, $\texttt{x - 1 = 2}$.
Therefore, execution starts from $\texttt{case 2}$.
Initially, $\texttt{y = 1}$.
In $\texttt{case 2}$, $\texttt{y = y * 3}$, so $\texttt{y = 1 * 3 = 3}$.
There is no $\texttt{break}$ after $\texttt{case 2}$, so execution falls through to $\texttt{case 3}$.
In $\texttt{case 3}$, $\texttt{y = y - 1}$, so $\texttt{y = 3 - 1 = 2}$.
Now $\texttt{break}$ is encountered, so the switch ends.
Therefore, the output is $\texttt{2}$.