Switzerland's Federal Government Expert Group on Business Cycles has marginally downgraded its 2025 economic growth forecast to 1.5%, down from 1.6%, citing delays in Europe's recovery and global economic uncertainty. Growth is expected to rise to 1.7% in 2026 as international conditions normalize.
While domestic demand and the services sector support growth, manufacturing and exports remain subdued. "For the coming year, the Expert Group on Business Cycles expects weaker development in the German and other European economies than previously estimated. Additionally, the Swiss franc remains relatively strong," the report said.
Rising unemployment remains a concern, with rates predicted to hit 2.7% in 2025 and 2026. Geopolitical risks, trade conflicts, and persistent inflation pose significant downside risks to Switzerland's economic outlook. However, lower inflation, now projected at 0.3% in 2025, is expected to bolster consumer spending and improve employment.
