Swiss economy growing slightly less quickly than expected

The Swiss economy grew slightly less quickly than expected in the first quarter of 2026. Real gross domestic product (GDP) increased by 0.4% on an adjusted basis compared to the previous quarter, the State Secretariat for Economic Affairs (SECO) said on Monday.

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In an initial flash estimate a fortnight ago, SECO had forecast slightly higher growth of 0.5%. However, the current figure is higher than in the two previous quarters. At that time, growth was 0.2% and -0.4% respectively.

According to SECO, growth at the beginning of the year was mainly driven by industry. Its value added grew strongly by 1.3% – after several quarters of subdued growth.

In the service sector (+0.2%), however, momentum remained subdued. According to SECO, the individual sectors developed differently. Trade and retail in particular shrank.

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This development is in line with stagnating private consumer spending. As a result, domestic final demand was weak at plus 0.1%, although government consumption increased by 0.9%.

The figure is adjusted for sporting events. As is well known, the Olympic Games and major football events distort Swiss GDP due to the licence income that flows to the sports associations based in Switzerland. Without adjustments, GDP growth was slightly higher at 0.7% in the first quarter.

Adapted from German by AI/ts