2025.08.2808:04:35UTC+00Swiss GDP Growth Confirmed at 0.1% in Q2

Switzerland's GDP growth decelerated to a modest 0.1% in the second quarter of 2025, consistent with initial predictions, following a more robust 0.7% increase in the first quarter. This slowdown was primarily due to weaknesses in the industrial sector and export figures, which overshadowed the progress observed in the services sector. The manufacturing industry saw a significant contraction of 2.4%, chiefly driven by a 4.8% decline in the chemicals and pharmaceuticals sectors, which had previously experienced an upswing in the first quarter owing to shifts in U.S. trade policies. Exports decreased by 2.7%, while imports dropped by 3.7%.

Conversely, the services sector demonstrated widespread growth. Notably, the hospitality industry rose by 1.5%, public administration by 1.2%, trade by 1.9%, and healthcare by 0.3%, collectively contributing to a slight increase in domestic demand of 0.1%. Private consumption experienced a 0.3% rise, and government expenditure increased by 0.9%. However, both the construction sector (-0.4%) and equipment investment (-0.8%) decreased, indicating a downturn in capital goods, especially in areas like aircraft and research and development.

The Swiss State Secretariat for Economic Affairs (SECO) has revised its economic forecasts, cautioning that the introduction of new U.S. tariffs is anticipated to impact growth negatively. Current projections estimate GDP growth at 1.2% for 2025, decreasing to just 0.8% in 2026, compared to previous estimates of 1.3% and 1.2%, respectively. Although a severe recession does not appear imminent, certain sectors may face considerable challenges.