Financial News: Swiss Govt Revises GDP Forecast To 1.5% In

Swiss Govt Revises GDP Forecast To 1.5% In 2025

12/17/2024 - 09:14:00 (RTTNews)

(RTTNews) - Switzerland's economy is expected to grow slightly less than previously estimated in the next year amid high uncertainty surrounding international economic and trade policy, the State Secretariat for Economic Affairs, or SECO, said Tuesday.

The expert group of the federal government forecast gross domestic product to grow 1.5 percent in 2025 instead of the 1.6 percent growth estimated previously in September. Domestic demand is likely to prove to be the primary growth driver.

After two years of sluggish growth, this would put Swiss economic growth in the upcoming year below the historical average of 1.8 percent. Further, this indicates that the recovery of the European economy has been delayed.

The Swiss economy is to grow 0.9 percent in the current year, compared to a 1.2 percent growth in the September forecast.

During 2025, the Expert Group on Business Cycles expects weaker development in the German and other European economies than previously estimated.

In 2026, the rest of Europe, in particular, should gradually recover from the current economic downturn, and this should also help boost Swiss exports and investments. The expert group forecast a 1.7 percent expansion with an average inflation rate of 0.7 percent.

Swiss domestic and international trade would be directly impacted by a more severe decline in the global economy as there are still geopolitical uncertainties, especially in relation to the wars in Ukraine and the Middle East. Additionally, inflation may continue to rise, which could delay the relaxation of monetary policy in key currency zones.

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