Economic Outlook Darkens

The Swiss National Bank (SNB) has raised alarms in its latest quarterly bulletin, pointing to a "considerably more uncertain" economic future for Switzerland and the world. This uncertainty stems from ongoing global geopolitical crises and the potential impact of tariffs on foreign goods, a policy championed by U.S. President Donald Trump.

GDP and Inflation Forecasts

Despite these challenges, the SNB maintains a cautiously optimistic outlook for Switzerland's GDP, forecasting growth between 1% and 1.5% in 2025, and around 1.5% in 2026. Inflation projections remain steady, with expectations of 0.4% in 2025, and 0.8% in both 2026 and 2027. However, the bank warns of "underlying inflationary pressure ..., particularly in Europe."

Monetary Policy Adjustments

The SNB also noted the Swiss franc's depreciation against the euro and the U.S. dollar following a December interest rate cut. The bank is prepared to implement additional monetary policy measures to influence exchange rates and interest levels if necessary.