The Swiss National Bank (SNB) warned in its quarterly bulletin published on Wednesday that the economic outlook for Switzerland and the rest of the world has become "considerably more uncertain" amid the ongoing geopolitical crises around the globe and the tariffs on foreign goods that United States President Donald Trump has either already introduced or is planning to impose.
The SNB described those as "the main risk" to Switzerland's gross domestic product (GDP), which it still predicted to grow by between 1% and 1.5% in 2025 and around 1.5% in 2026. On inflation, the bank said its forecast "hardly changed" and projected it to reach 0.4% for 2025, 0.8% for 2026, and 0.8% for 2027. However, it also noted the presence of "underlying inflationary pressure ..., particularly in Europe."
Furthermore, the SNB recognized that the Swiss franc "depreciated against the euro and the US dollar" after the December cut in the bank's interest rate and vowed to, if necessary, "use additional monetary policy measures to influence the exchange rate or the interest rate level."
