S&P 500 eases slightly from fresh record high after stronger economic growth
Investing.com -- The Swiss economy is facing significant downside risks if hit by the full force of looming U.S. tariffs, according to the International Monetary Fund (IMF) on Tuesday.
The IMF has reduced its growth forecast for the Swiss economy to 1.3% this year, down from its previous projection of 1.7%. Looking ahead, the fund’s first forecast for 2026 predicts growth of 1.2%.
These projections could be revised downward if Switzerland’s open economy bears the full impact of threatened U.S. tariffs, including charges on pharmaceutical imports. In such a scenario, growth forecasts could drop to 1.1-1% for 2025 and 1.0-0.9% for 2026.
"Downside risks are significant," said Gabriel Di Bella, head of the IMF delegation to Switzerland, during a press briefing in Bern. "Downside risks come, of course, from potentially higher tariffs or also from the policy uncertainty in general."
Switzerland currently faces a potential 31% tariff on exports to the United States, which would severely damage trade with its largest export market.
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