Switzerland has sharply revised downward its GDP forecasts for 2025 and 2026 as supply chain pressures, export declines, and U.S. tariffs weigh heavily on the economy. The State Secretariat for Economic Affairs (SECO) now projects growth of about 1.3% in 2025 (down from earlier estimates) and 0.9–1.2% for 2026, citing that additional U.S. tariffs are placing a heavy burden on export-oriented sectors and are expected to ripple across the broader economy. Swiss exporters, especially in industries like luxury goods, machinery, and precision manufacturing, are seeing reduced demand, higher costs, and increased uncertainty. Analysts warn that continued trade tensions could push parts of the Swiss economy into recession if global demand weakens further.
The Swiss economy has always relied heavily on exports, so it’s not too surprising that new US tariffs are creating real pressure. With some industries like precision manufacturing and luxury goods being hit the hardest, these trade tensions could have ripple effects across Europe. It’ll be interesting to see if Switzerland responds with new trade partnerships or domestic stimulus to offset the slowdown
ReplyDeleteVery interesting to see the effects that the US has made on other countries economies. The fact that our tariffs could lead to an economic recession is mind blowing quite honestly. It is interesting to follow the tension globally caused by U.S tariffs.
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