The Swiss economy is expected to grow by 1.5% in 2025, according to the latest forecast by the State Secretariat for Economic Affairs (SECO). This is a slight revision down from the previous estimate of 1.6%, reflecting the impact of a slowdown in Europe and other global markets. The economy is also expected to grow by 0.9% this year, lower than the previous forecast of 1.2%.
SECO predicts that domestic demand will be a key driver of growth next year, as Switzerland faces subdued demand for its goods in key markets such as Germany and China. However, the long-term average growth rate of 1.8% is still expected to be maintained.
The government’s forecast for 2026, which predicts a growth rate of 1.7%, is the first prediction for that year. This indicates a cautious outlook for the future, as the Swiss economy continues to face uncertainties such as the unpredictable trade policies of the United States.
The KOF Swiss Economic Institute also released its own forecast, predicting a growth rate of 1.4% in 2025 and 1.7% in 2026. It expects foreign demand to remain weak until mid-2025 before showing slight improvement.
The lower growth forecasts for the Swiss economy reflect the challenges it faces in the current global economic climate. The slowdown in key markets and uncertainties in international trade policies pose risks for the country’s economic performance. However, the Swiss economy remains resilient and is expected to continue growing in the long term.