Swiss economy expanded steadily in 2025 as domestic demand led growth

Swiss real GDP expanded 1.6% in 2025, according to first estimates from the Federal Statistical Office, keeping the economy on a broadly stable path after 1.5% growth in 2024. The result offers a picture of resilience, though it remains below Switzerland's longer term pace. Real GDP grew by about 2.0% a year on average between 2005 and 2024, a period that included the global financial crisis, the pandemic recession and the sharp rebound that followed.

The composition of growth mattered more than the headline alone. Domestic demand increased 2.5%, providing the main lift as companies and households spent at home. Investment delivered the strongest acceleration, rising 3.5% after stagnating in 2024. Household consumption also contributed, though at a slower rate of 1.7%, compared with 2.1% the previous year.

The figures were revised alongside the 2025 estimate. The FSO lifted its 2023 growth figure by 0.2 percentage points and its 2024 figure by 0.1 points, putting the previous year's expansion at 1.5%, up from the initial 1.4%. The revisions reinforce a steady, carefully measured expansion rather than a sudden change in direction.

Investment rose 3.5%, turning a flat performance in 2024 into one of the economy's clearest growth engines. Companies increased spending on machinery and equipment by 3.7%, a sign that firms continued to renew productive capacity despite a moderate overall growth environment. Construction investment climbed 2.9%, led particularly by new buildings. Civil engineering grew more slowly at 1.9%, with higher prices weighing on activity.

Households added another layer of support. Consumption by households and non-profit institutions serving households increased 1.7% in real terms. Health care, transport and restaurants recorded particularly strong spending. Tobacco and alcohol moved in the opposite direction, with consumption falling in both categories.

Together, the figures show an economy supported by domestic decisions that are closer to Swiss households and companies than to overseas demand. Investment can strengthen future output when it improves equipment, buildings and business capacity. The national accounts do not establish how much of the spending reflects productivity gains or temporary catch-up, so the durability of this support will depend on whether firms continue to invest as global conditions evolve. For now, Switzerland entered 2026 with a stronger domestic base than the previous year's figures suggested.

Imports grew 11.7%, twice the pace of exports, reshaping the external balance in 2025. Exports rose 5.9%, but the faster increase in imports narrowed Switzerland's trade surplus after it had widened the previous year. The gap was especially clear in goods excluding gold: imports climbed 10.5%, while exports increased 4.8%.

Services provided some offset. Switzerland's services surplus widened as exports rose 1.8% and imports fell 0.7%. That performance helped preserve part of the country's external strength, even as goods trade became less supportive of growth.

The trade figures also clarify the domestic-demand story. Stronger household and business spending often draws in more foreign goods, so the import surge is consistent with an economy where consumption and investment are carrying more of the expansion. It also means the external sector contributed less to the 2025 balance than it did in the previous year.

Switzerland remains deeply exposed to international trade, particularly through manufacturing, chemicals, pharmaceuticals and financial services. A weaker trade surplus does not by itself signal an economic downturn, but it leaves future growth more dependent on the strength of domestic spending and the ability of Swiss exporters to maintain demand abroad.