Swiss economy grew faster than first estimated in 2025

Switzerland's economy delivered a stronger performance than expected — and the upgrade lands at a critical moment. GDP expanded by 1.6% in 2025, according to revised Federal Statistical Office figures released on August 25, 2026. That is a clear improvement on the 1.4% estimate previously issued by the State Secretariat for Economic Affairs, or SECO.

The revision does more than tidy up the statistical record. It shows an economy that kept moving despite a difficult international backdrop, including tariff pressures and an export environment challenged by the strong Swiss franc. The figures also reinforce a broader trend: Swiss growth has been modest, but persistent. The FSO lifted its estimate for 2024 from 1.4% to 1.5% and for 2023 from 0.8% to 1%.

The headline figure, calculated at constant prices, captures the volume of economic activity rather than the effect of price changes. It points to an economy gaining momentum through domestic demand and investment, even as the external balance weakened. Switzerland is not surging across every sector. However, the revised data confirms that the country entered 2026 from a firmer position than earlier estimates suggested.

Domestic demand rose 2.5% and gave Switzerland's economy its decisive lift. Investment led the charge, increasing by 3.5% overall and by a stronger 3.7% in capital goods. That spending signals companies and public-facing sectors continued to commit resources to equipment, capacity and future production despite uncertainty abroad.

Construction also turned positive, growing by 2.9%, largely because new-build activity accelerated. Civil engineering expanded more moderately, by 1.9%, as rising prices limited the real increase. Together, the figures show an investment cycle that is active but not uniform: new projects are moving ahead, while cost pressures continue to shape what gets built and when.

Household consumption added another layer of support. Spending grew by 1.7%, although that was slower than the 2.1% recorded in 2024. Swiss households spent more on healthcare, transport and hospitality, while expenditure on tobacco and alcoholic beverages declined. The pattern suggests consumers are still spending, but selectively. For Switzerland, that matters. A domestic economy backed by investment and consumption can cushion external shocks — at least until international trade conditions begin to bite more deeply.

Switzerland's trade surplus narrowed sharply as imports outpaced exports in the so-called “Year of Tariffs.” Imports jumped 11.7% in 2025, while exports increased by just 5.9%. The imbalance was driven mainly by trade in goods, according to the FSO. Services provided some relief, recording a larger surplus than in 2024.

That contrast exposes the pressure points beneath the upbeat GDP headline. Switzerland's globally connected economy benefits when its high-value goods and services reach foreign markets, but it remains vulnerable to tariffs, currency movements and weaker external demand. The revised growth figure therefore does not erase the risks facing exporters — it makes the sources of resilience clearer.

Domestic demand and investment helped offset the drag from trade. Yet imports rising nearly twice as fast as exports also indicate that Swiss consumers and businesses were buying more from abroad, whether to meet domestic demand or support investment. The result is an economy growing from several engines, not one.

The challenge now is to convert that activity into durable momentum. If tariff barriers persist and the franc remains strong, exporters will confront a tougher road ahead, even as the domestic economy starts 2026 with renewed statistical confidence.