Swiss Economy Returns to Growth in Q4

Switzerland’s sport-adjusted GDP rose 0.2% in the fourth quarter of 2025, rebounding from a 0.4% contraction in the previous quarter and matching preliminary estimates. The modest recovery suggests underlying resilience after the sharp downturn triggered by US President Donald Trump’s initial 39% tariff, which led to the steepest contraction since the pandemic. A trade agreement reached in November, lowering tariffs to 15%, helped ease concerns about prolonged economic damage. Domestic demand supported growth, with private consumption up 0.4% and investment increasing in construction (1.0%) as well as equipment and software (0.6%). However, net trade weighed on GDP as imports outpaced exports. On an annual basis, growth slowed slightly to 0.8% in Q4 from 0.9% in Q3. For 2025 as a whole, the economy expanded 1.4%, up from 1.2% in 2024.

Switzerland’s economy grew by 0.2% quarter-on-quarter in the fourth quarter of 2025, rebounding from a 0.5% contraction in the previous quarter, flash estimates showed. The data points to underlying resilience in the Swiss economy following the initial imposition of US President Trump’s 39% tariff, which resulted to the largest contraction since the pandemic. A trade deal reached in mid-November, reducing tariffs to 15%, raised hopes that the impact of tariffs would be contained. Growth was primarily driven by a moderate rise in the services sector, while the industrial sector stagnated. For 2025 as a whole, GDP increased by 1.4%, following a 1.2% rise in the previous year, but still below its long-term average growth (1.8% since 1981), as a challenging international environment weighed on the export-oriented manufacturing sector.

Switzerland’s GDP fell by 0.5% in the third quarter of 2025, reversing the upwardly revised 0.2% growth seen in the previous quarter. This marks the country’s first economic contraction since Q1 2024 and the steepest decline since the early months of the COVID-19 pandemic. The downturn was driven primarily by the chemical and pharmaceutical sector, where earlier export strength was followed by a significant decline due in part to US tariffs. Weakness in services activity compounded the slide, failing to counterbalance the broader industrial slowdown. On the expenditure side, goods exports dropped 4.2%, outpacing the 0.8% decline in imports. Investment also softened, with slight decreases in equipment and software (-0.1%) as well as construction (-0.2%). Government consumption edged down 0.2%, while private consumption offered a modest bright spot, rising 0.4%. Compared with a year earlier, GDP growth eased to 0.8% in Q3 from 1.5% in Q2.