Swiss GDP Growth Accelerates in Q1

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.

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.