Switzerland Boosts Growth Forecast Amid Pharmaceutical-Driven Bump
The State Secretariat for Economic Affairs (SECO) in Switzerland has revised its growth forecast for 2026, predicting a GDP increase of 1.7% adjusted for large sports events. This upgraded projection follows a stronger-than-expected second quarter and surpasses the initial estimate of 0.9%. SECO emphasized that this growth is likely driven by the pharmaceutical sector's performance, but cautioned that it may overstate the underlying economic momentum.
The organization left its inflation forecast unchanged at 0.6% for both this year and next, aligning with the Swiss National Bank's projections from June. This stability in inflation expectations contrasts with concerns about high oil prices and ongoing trade tensions with the US.
Policymakers are widely expected to maintain the policy rate at zero on September 24, and may adjust their language regarding potential franc intervention due to its recent decline against the euro. SECO also pointed out two pressure points: pricier oil and continuing US trade strains, alongside a softer franc.