Switzerland's Economy Resilient Amid Global Crises: Wages Expected to Rise

Despite global crises and geopolitical tensions, Switzerland's economy is expected to continue growing in 2027. According to a survey by the Center for Economic Research at ETH Zurich Technical University (KOF), Swiss companies plan an average nominal increase of 1.2 percent in wages. This translates to a real wage increase of approximately 0.7 percent if inflation remains at around 0.5 percent, as forecast.

The projected increase is significant, especially considering that from 2014 to 2023, real wages in Switzerland grew by an average of just 0.2 percent per year. Michael Siegenthaler, head of labor market research at KOF, believes the forecasts are promising, given the challenges facing the Swiss economy.

However, there is a difference between the expectations of experts and those of companies. Companies surveyed expect inflation to be 1.1 percent, which would result in minimal real wage growth. KOF experts point out that Swiss companies have tended to overestimate inflation in the past.