Swiss economic system to develop 1.5% subsequent 12 months, authorities forecasts

ZURICH (Reuters) – The Swiss economic system will develop by 1.5% subsequent 12 months, the federal government forecast on Tuesday, barely revising down its outlook for certainly one of Europe’s historically most resilient economies.

This 12 months, the economic system is predicted to develop 0.9%.

Switzerland’s export-oriented economic system had beforehand been forecast to develop by 1.2% this 12 months and 1.6% subsequent 12 months, the State Secretariat for Financial Affairs (SECO) mentioned.

In 2026, the federal government expects Swiss financial output to broaden by 1.7%, its first prediction for that 12 months.

All three forecasts had been under the long-term common for Swiss financial progress of 1.8%, and mirror the affect of a slowdown in Europe and additional afield.

SECO mentioned home demand is prone to be a key driver of progress subsequent 12 months in Switzerland, which is having to climate subdued demand for its items in Germany and China.

All of the forecasts are adjusted to take away the affect of sporting occasions – earnings generated by sporting organisations based mostly in Switzerland from broadcasting and licensing offers which don’t mirror the nation’s broader financial efficiency.

The unpredictable nature of United States commerce coverage, together with the coverage of tariffs by the incoming Trump administration, additionally provides to the dangers forward.

There’s at present a substantial amount of uncertainty about worldwide financial and commerce coverage, SECO mentioned.

In a separate forecast on Tuesday, the KOF Swiss Financial Institute mentioned it anticipated the Swiss economic system to develop by 1.4% in 2025 and 1.7% in 2026. It mentioned it anticipated overseas demand to be weak till the center of 2025 earlier than enhancing barely.