Finance
Swiss economy to grow 1.5% next year, government forecasts
Published by Uma Rajagopal
Posted on December 17, 2024
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ZURICH (Reuters) – The Swiss economy will grow by 1.5% next year, the government forecast on Tuesday, slightly revising down its outlook for one of Europe’s traditionally most resilient economies.
This year, the economy is expected to grow 0.9%.
Switzerland’s export-oriented economy had previously been forecast to grow by 1.2% this year and 1.6% next year, the State Secretariat for Economic Affairs (SECO) said.
In 2026, the government expects Swiss economic output to expand by 1.7%, its first prediction for that year.
All three forecasts were below the long-term average for Swiss economic growth of 1.8%, and reflect the impact of a slowdown in Europe and further afield.
SECO said domestic demand is likely to be a key driver of growth next year in Switzerland, which is having to weather subdued demand for its goods in Germany and China.
All the forecasts are adjusted to remove the impact of sporting events – income generated by sporting organisations based in Switzerland from broadcasting and licensing deals which do not reflect the country’s broader economic performance.
The unpredictable nature of United States trade policy, including the policy of tariffs by the incoming Trump administration, also adds to the risks ahead.
There is currently a great deal of uncertainty about international economic and trade policy, SECO said.
In a separate forecast on Tuesday, the KOF Swiss Economic Institute said it expected the Swiss economy to grow by 1.4% in 2025 and 1.7% in 2026. It said it expected foreign demand to be weak until the middle of 2025 before improving slightly.
(Reporting by John Revill and Anastasiia Kozlova)