Published by Global Banking & Finance Review®
Posted on November 28, 2025
1 min readLast updated: January 20, 2026
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Switzerland's economy shrank by 0.5% in Q3, impacted by lower pharma exports. Domestic demand, led by private consumption, helped stabilize the economy.
ZURICH (Reuters) -Switzerland's economy contracted by 0.5% in the third quarter when adjusted for sporting events, driven by lower exports in the chemical and pharmaceutical industry, the economy ministry said on Friday.
The drop comes after 0.2% growth in the previous quarter and is linked to recent volatility in U.S. trade policy.
The chemical and pharmaceutical industry saw a sharp drop in value added as front-loading effects from the second quarter ceased, leading to a compensatory drop in the period from July to September.
Overall, goods exports fell significantly for the second consecutive quarter, the ministry said.
Service exports barely rose in the third quarter, and growth in the services sector was below average overall, failing to offset the downturn in the industrial sector.
Parts of domestic demand stabilised the economy, with private consumption growing solidly, supported by spending on housing and energy, health, restaurant and hotel services, and communications, the ministry added.
(Reporting by Ariane Luthi, Editing by Miranda Murray)
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to widespread economic instability and often resulting in bank failures and loss of savings.
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.
Exports are goods and services produced in one country and sold to another, contributing to the exporting country's economy and trade balance.
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