UBS predicts Swiss GDP growth at 1% in 2025, 1.2% in 2026

Published 14/05/2025, 09:48
UBS predicts Swiss GDP growth at 1% in 2025, 1.2% in 2026

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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