The Swiss economy is projected to grow faster than anticipated this year despite the risk of rising energy costs due to the Iran war, the economy ministry said.
GDP growth is now seen at 1.7 percent, nearly double the 0.9 percent expansion forecast by the ministry’s expert group in June.
The revision reflects stronger than expected growth for its chemicals and pharmaceutical industries in the second quarter, when growth jumped by 1.5 percent after several sluggish quarters.
Even if growth moderates in the coming months, “the economy remains broadly on track for recovery”, the ministry said in a statement, with the expert group forecasting GDP growth of 1.6 percent for 2027.
“In particular, foreign trade is expected to contribute more strongly to this year’s growth than was anticipated in June,” it said.
It warned nonetheless about the uncertain outlook for inflation stemming from higher oil and gas prices due to the Mideast war, which could weigh on consumer spending, and the prospect of further US tariffs from President Donald Trump’s administration.
“Further risks to the economic outlook stem from possible corrections in financial markets and from global debt, given that financing costs have risen internationally,” the ministry added.
