Switzerland's GDP Edges Up in 2025

Source: Dukascopy Bank SA
Switzerland's economy showed modest signs of recovery at the end of the year. In the fourth quarter of 2025, gross domestic product grew by 0.2% after adjusting for sporting events, helping stabilize the economy following a 0.4% decline in the previous quarter. Over the full year, adjusted GDP increased by 1.4%, an improvement compared with 1.2% growth in 2024.

The main support in the fourth quarter came from domestic demand. Private consumption rose by 0.4%, driven by higher spending on clothing and shoes, as well as on housing, energy, and healthcare. Investment activity also strengthened. Construction investment expanded by 1.0%, while equipment investment increased by 0.6%, supported in part by research and development spending. Stronger domestic demand led to a notable rise in imports, which climbed by 2.7%. Exports of goods recovered slightly, increasing by 0.6% after two consecutive quarters of decline.



Sector performance was mixed. The chemical and pharmaceutical industry returned to moderate growth, expanding by 1.9% and supporting related exports. However, the rest of the manufacturing sector continued to struggle, contracting by 1.3% due to weak sales. As a result, the broader industrial sector remained flat overall. Retail trade performed strongly, growing by 2.0% as it benefited from solid consumer demand. The accommodation and food services sector also expanded by 1.1%, supported by increased overnight stays from both domestic and international visitors.

Growth in the broader services sector remained subdued at 0.2%, below its historical average. The transport sector declined by 0.8% as freight transport weakened. Financial services also contracted by 0.6%, while business-related services fell by 0.3%.
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