Swiss GDP Growth Forecast Adjusted Downwards

The State Secretariat for Economic Affairs (SECO) has revised the Swiss gross domestic product (GDP) growth estimate for 2025 from 1.5% to 1.4%. Similarly, the GDP growth forecast for 2026 has been adjusted from 1.7% to 1.6%. This adjustment suggests that Switzerland's economy will continue to grow below its historical average for the next two years.

Stable Domestic Demand Amidst Global Uncertainties

Despite the slight downturn, domestic demand is expected to remain stable in 2025, with low inflation rates anticipated to bolster household spending. The inflation projections for this year have remained stable at 0.3%, while the unemployment rate is now forecasted at 2.8%, a slight increase from the previous estimate of 2.7%.

Global Trade War: A Potential Risk Factor

SECO emphasized that the current economic outlook presupposes the absence of an escalating global trade war, highlighting the potential risks that could impact Switzerland's economic growth in the coming years.