Swiss Economic Outlook

ZURICH (Reuters) – The Swiss economy is expected to grow by 1.5% next year, with a slight downward revision from previous forecasts. This year, growth is predicted at 0.9%.

The State Secretariat for Economic Affairs (SECO) had initially projected an increase of 1.2% for this year and 1.6% for next year. In 2026, they anticipate a growth of 1.7%, marking their first estimate for that year.

All forecasts are below the long-term average growth rate of 1.8% for Switzerland, reflecting the impact of an economic slowdown both in Europe and globally.

SECO indicated that domestic demand will likely drive growth in the coming year, as Switzerland faces weakened demand for its products from Germany and China.

Forecasts are adjusted to exclude revenues from sporting events in Switzerland, which may skew broader economic performance. Additionally, uncertainties surrounding U.S. trade policy pose further risks.

The KOF Swiss Economic Institute, in a separate forecast, predicts 1.4% growth for 2025 and 1.7% for 2026, noting foreign demand may remain weak until mid-2025 before showing slight improvements.