Trump signs order raising Canada tariffs to 35% from 25%
Investing.com -- UBS has provided an outlook on the Swiss economy, indicating that the United States’ trade policy is having a negative impact on the global economy, which in turn affects Swiss exports and investments.
Despite these challenges, a resilient domestic economy is expected to support Swiss GDP growth. The adjusted forecast anticipates an approximate 1% growth in 2025, considering adjustments for sporting events.
The bank also predicts a slight rebound in the European economy, which is projected to contribute to a 1.2% increase in Swiss GDP in the following year.
However, UBS cautions that economic risks are substantial and predominantly negative. If the imposition of tariffs by the Trump administration leads to a global recession, the growth forecast for the Swiss economy could become unattainable.
The recent strengthening of the Swiss franc, coupled with a sluggish domestic economy, continues to exert pressure on inflation rates. UBS expects inflation to remain low, forecasting a rate of 0.2% in 2025 and a slight rise to 0.5% in 2026.
In response to the economic environment and inflationary pressures, UBS anticipates that the Swiss National Bank (SNB) will make a further rate cut to 0% in June. This move is aimed at stimulating economic activity by making borrowing more affordable and encouraging investment and spending.
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