UBS economists expect slow growth due to Trump
Keystone-SDA
The Swiss economy will stagnate this year and next, say economists at UBS, who blame US President Donald Trump.
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The US president has brought about a turning point in global trade with the introduction of far-reaching tariffs, according to a study published on Tuesday. This will lead to a significant slowdown in the global economy.
Nevertheless, there are no signs of a global recession, according to the experts at the bank. After all, in their opinion, Trump’s tariffs are unlikely to be as high as announced on “Liberation Day”.
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Nevertheless, growth in Switzerland is expected to be just 1% in 2025 and 1.2% in 2026 (adjusted for sporting events). These figures are well below the long-term trend. As a result, the unemployment rate will also rise to over 3%.
According to a UBS survey, Trump’s tariffs are also causing red heads among 800 Swiss companies with foreign trade links. Around 70% expect negative effects on their company.
Companies generally want to pass on the customs costs to their sales prices. However, they are also considering “increasing efficiency”, in other words savings programmes.
Translated from German by DeepL/ts
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