ZURICH, June 16 (Reuters) – The Swiss government has revised its economic growth forecasts for 2025 and 2026 downward due to concerns over the ongoing global trade war. The Swiss economy, known for its resilience in Europe, is now projected to grow by 1.3% in 2025, a decrease from the previous forecast of 1.4%. Additionally, the State Secretariat for Economic Affairs (SECO) lowered its 2026 growth projection to 1.2%, down from 1.6%, citing expected declines in exports. These figures, adjusted for the impact of sporting events, fall below Switzerland’s average growth rate of 1.8%. SECO noted that uncertainty surrounding international trade policies continues to weigh heavily on both global and Swiss economic prospects. While Switzerland experienced robust growth earlier in the year, this was largely attributed to exporters accelerating shipments ahead of new U.S. tariffs. SECO warned of a potential slowdown in economic performance for the remainder of the year. The KOF Swiss Economic Institute also downgraded its 2026 growth forecast to 1.5% from 1.9%, pointing to the unpredictable trade policies of the United States. The imposition of a 10% tariff on Swiss exports, following the suspension of an initial 31% duty, has heightened uncertainty among companies. Alexander Rathke, head of Swiss economic forecasting at KOF, suggested that if higher tariffs are enforced, Switzerland could face a brief recession in 2025. He explained that Swiss goods would become less competitive in the U.S. market compared to products from countries with lower tariffs. However, Rathke assigned a ‘very low’ probability to this scenario.
— new from Reuters
