Swiss Economic Growth Accelerates to 0.5% in Early 2026 Despite Energy Challenges
Q1 2026 Swiss GDP Performance and Contributing Factors
Overview of Economic Growth
May 18 (Reuters) - Switzerland's economy grew by 0.5% during the first quarter of 2026, the government said on Monday, an acceleration from the end of last year, adding the impact of high energy prices linked to the Middle East conflict may increase in future quarters.
Sectoral Expansion
The flash GDP estimate showed an expansion across industrial and service sectors, the State Secretariat for Economic Affairs said.
Comparison to Previous Quarters
As well as marking an increase from 0.2% growth in the prior quarter, the first-quarter figure was also above the average Swiss quarter-on-quarter growth rate of 0.4%. The figure was seasonally adjusted and adjusted for the impact of sporting events.
Key Drivers Behind Growth
Exports and Tariff Reductions
SECO, which is due to give its more in-depth first-quarter GDP figures on June 1, said growth was supported by increased exports, helped by lower U.S. tariffs at the start of the year.
Expert Analysis and Forecasts
Economist Philipp Wegmueller said growth was in line with expectations, referring to the state secretariat's forecasts for annual growth of 1.0% for 2026, below the long-term Swiss average of 1.8%.
Potential Risks from Energy Prices
Continued uncertainty, linked to higher energy prices caused by the Middle East conflict, may affect the Swiss economy in future, he said.
"The higher oil prices may make some raw materials more expensive, and there was a small impact in the quarter," Wegmueller said. "This may become more visible in the months ahead.
Switzerland’s Resilience to Energy Shocks
"But in general Switzerland is less exposed to energy price shocks than other countries because energy is a smaller part of the inflation basket and Swiss companies are not particularly energy intensive."
Reporting Credits
(Reporting by John Revill; additional reporting by Tristan Veyet and Bernadette Hogg in GdanskEditing by Ludwig Burger and Barbara Lewis)
