Swiss GDP Growth Accelerates in Q1

Switzerland’s gross domestic product expanded 0.4% quarter-on-quarter in the three months to March 2026, less than initial estimates of 0.5%. Industrial output increased 1.3%, led by manufacturing (+1.5%). On the other hand, the chemical and pharmaceutical industry contracted (-3.4%) as exports of these products fell sharply, contributing to a 2.2% decline in overall goods exports. Services grew just 0.2%, with mixed performance across sectors. Transport (+1.9%) and financial services (+1.3%) supported growth, helped by stronger interest and commission income. In contrast, trade fell 0.8%, including a 1.3% decline in retail activity. Accommodation and food services also weakened (-0.6%) due to fewer overnight stays. Services exports rose only 0.5%. Domestic final demand increased just 0.1%. Government spending grew strongly (+0.9%), but both equipment investment (-0.2%) and construction investment (-0.2%) declined. Imports fell 2.4%, reflecting weak domestic demand.

Switzerland’s economy expanded by 0.5% quarter-on-quarter in the three months to March 2026, accelerating from 0.2% growth in the previous period, flash estimates showed. This marked the strongest quarterly performance in a year, with both the industrial and services sectors contributing to the expansion. The figures suggest the Swiss economy continued to recover from a brief contraction following the US tariff shock last summer, with growth proving resilient despite a surge in energy prices and a stronger franc after the outbreak of the Iran war. Initial attacks drove oil and gas prices sharply higher and boosted safe-haven demand for the franc, though a late-March easing in the currency may have provided some relief to exporters toward the end of the quarter.

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.