Swiss Economic Growth Forecast Adjusted for 2025

The Federal Government Expert Group on Business Cycles in Switzerland has revised its economic growth forecast for 2025, lowering it slightly from 1.6% to 1.5%. This adjustment is attributed to the delayed recovery in Europe and the ongoing global economic uncertainties.

Despite the downward revision, the forecast anticipates a modest increase to 1.7% in 2026 as international economic conditions stabilize. Domestic demand and the services sector continue to support growth, but manufacturing and exports remain sluggish.

Key Factors Influencing the Forecast:

The report highlights that the anticipated weaker development in the German and other European economies, along with the relatively strong Swiss franc, are significant factors affecting the revised forecast.

Unemployment rates are expected to rise, reaching 2.7% in both 2025 and 2026, posing a concern. Geopolitical risks, trade conflicts, and persistent inflation present significant downside risks to Switzerland's economic outlook.

On a positive note, lower inflation, projected at 0.3% in 2025, is expected to boost consumer spending and improve employment conditions.