FX.co ★ Swiss Economy Returns to Growth in Q4

Switzerland’s sport-adjusted GDP grew by 0.2% in the fourth quarter of 2025, recovering from a 0.4% contraction in the previous quarter and in line with preliminary estimates. The modest rebound points to underlying resilience following the sharp downturn triggered by US President Donald Trump’s initial 39% tariff, which had resulted in the steepest contraction since the pandemic. A trade agreement reached in November, which reduced tariffs to 15%, helped alleviate concerns over prolonged economic damage. Domestic demand underpinned the recovery, with private consumption rising 0.4% and investment strengthening in both construction (1.0%) and equipment and software (0.6%). However, net trade dragged on overall growth as imports rose faster than exports. On an annual basis, GDP growth eased slightly to 0.8% in Q4 from 0.9% in Q3. For 2025 as a whole, the economy expanded by 1.4%, compared with 1.2% in 2024.