- Prior -0.5%; revised to -0.4%
Swiss economic output bounces back in the final quarter of last year, after a drag in the third quarter. The decline was largely due to a big fall in the chemical and pharmaceutical industry, but that has now rebounded (+1.9%) in Q4 2025. Domestic demand conditions (+0.5%) held up and was supportive in the final quarter, helping to push up growth.
Looking to the overall 2025 picture, Swiss GDP grew by 1.4% on the year. And that marks an improvement from the 1.2% reading in 2024. SECO notes that:
“Domestic demand supported economic activity, largely driven by solid growth in private consumption. In contrast, foreign trade slowed GDP growth, as exports grew at a below-average
rate while imports rose significantly.”
General economic conditions look to be holding up for Switzerland, so that at least provides a buffer for the SNB. That as they are having a tough task in dealing with deflationary pressures once again. Swiss inflation is teetering just above the zero mark and having to balance that out against a strong currency is the struggle that the central bank is facing right now.
That will be the key theme in the months ahead for Switzerland, especially since EUR/CHF has already broken the 2025 lows and is keeping just above 0.91 for now.
