Swiss Q2 GDP Growth Strongest Since 2021

Switzerland's economy expanded by 1.5% quarter-on-quarter in the three months to June 2026, accelerating sharply from 0.4% growth in the previous period, according to flash estimates. The reading marked the strongest quarterly expansion since the third quarter of 2021, underscoring the country's ability to withstand headwinds, including elevated energy costs linked to Middle East tensions and persistent trade uncertainty. The latter stems from the absence of a legally binding trade agreement with the US, even after Switzerland secured a preliminary deal last November that capped tariffs at 15%. Growth was driven primarily by the industrial sector, with the chemical and pharmaceutical industry providing the largest boost to economic activity. The services sector also expanded, further supporting the broad-based improvement in output.

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.