Switzerland Raises Economic Growth Forecast to 1.7% Amid Strong Q2 Growth

The Swiss economy is expected to grow at a faster rate than previously forecasted, according to the federal government's economists. The State Secretariat for Economic Affairs (SECO) announced that the real gross domestic product (GDP) growth for 2026 is revised up to 1.7%, from the previous estimate of 0.9%. This revision comes after the latest data showed strong growth in the second quarter, with GDP growing exceptionally strongly.

However, experts warn that this growth may not continue unchecked, and a 'certain counter-movement' is expected in the second half of the year. The strong growth in the second quarter was largely due to the chemical and pharmaceutical industry, which is considered volatile. This could lead to an overstatement of the underlying economic momentum.

The depreciation of the Swiss franc is also helping the economy, as it benefits the export sector. Nevertheless, experts continue to forecast a rate of 0.6% inflation for both 2026 and 2027, with the unemployment rate expected at 3.1% in 2026 and 3.0% in 2027.