Published by Global Banking and Finance Review
Posted on December 15, 2025
2 min readLast updated: January 20, 2026
Swiss economic growth is forecasted to slow in 2026 to 1.1%, despite a trade deal reducing U.S. tariffs, as international outlook worsens.
ZURICH, Dec 15 (Reuters) - Swiss economic growth will slow in 2026, the KOF Institute at ETH in Zurich forecast on Monday, as the positive impact of the agreement to reduce U.S. tariffs is offset by a deterioration in the international outlook.
For 2025, KOF expects the Swiss economy to grow by 1.4%, when the effect of sporting events is removed, before slowing to 1.1% in 2026 and then rising to 1.7% in 2027.
All the figures are below the long-term average growth rate for the Swiss economy, which the government says is 1.8%.
The 2026 and 2027 forecasts were slightly higher than the previous KOF forecast in September, reflecting the preliminary agreement to reduce U.S. tariffs on Swiss exports from 39% to 15%.
Still, uncertainty remains high, as the mutual declaration of intent does not yet constitute a legally binding agreement, KOF said.
The outlook for the international environment has slightly deteriorated compared with the previous forecast, it said.
In the euro area, growth remained weak in the third quarter, while a boost from increased government spending in Germany is facing delays.
In the United States, weakening consumer sentiment, soft labour market data and the most recent government shutdown all point to a cyclical slowdown, KOF said.
(Reporting by John Revill, Editing by Miranda Murray)
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured by the rise in GDP.
Economic benefits are the advantages or positive outcomes derived from economic activities, such as increased income, job creation, and improved living standards.
The financial community includes individuals and institutions involved in the management, investment, and regulation of financial assets and resources, influencing economic activities.
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