BAK Economics Boosts Swiss Growth Forecast Amid Strong Q2 Numbers
The Swiss economy is expected to experience significant growth this year, according to revised forecasts from BAK Economics. The institute has more than doubled its growth forecast for the current year, predicting a 1.8 percent increase in gross domestic product (GDP). This revision is largely due to strong growth figures for the second quarter, which were reported at 1.5 percent.
The increased optimism is not reflected in the forecast for next year, however. BAK Economics has actually lowered its prediction for 2027 slightly, from 1.4 percent to 1.3 percent. The institute notes that some of this year's growth may be due to pull-forward effects related to U.S. tariff policy.
The Swiss National Bank (SNB) is expected to raise interest rates in December as a result of the stronger economy and return to positive inflation. This move is seen as a 'normalization step' rather than the start of a traditional tightening cycle, according to the economists.