Swiss Government Lowers 2025 Growth Forecast to 1.4% Amid Global Trade Concerns

Switzerland's economic outlook remains cautious as the government and financial institutions revise growth forecasts downward due to global uncertainties, particularly related to trade policies under U.S. President Donald Trump. The Swiss National Bank has cut its main interest rate to 0.25% amid controlled inflation and signs of a weakening Swiss franc. The Finance Ministry and the State Secretariat for Economic Affairs (SECO) predict GDP growth of 1.4% for 2025, slightly down from previous estimates, and 1.6% for 2026, both below the historical average. Experts express concerns that the potential for escalating trade tensions could significantly impact Swiss exports and overall economic activity. Despite these challenges, inflation is expected to remain low, supporting consumer spending, while some sectors may see a recovery by 2026 as European economies stabilize. The overall sentiment points to more downside risks than upside potential in the near future.