Switzerland: Economic growth picks up in the second quarter of 2026
GDP reading: Switzerland’s GDP grew 1.9% in seasonally adjusted quarter-on-quarter terms in Q2, following a 0.6% expansion in the prior quarter. Q2’s reading was the strongest since Q3 2021. Adjusting for sporting events—which frequently skew Swiss GDP data due to the country hosting several major global sports organizations—the economy expanded 1.5%.
Pharma sector key to expansion: Relative to the previous quarter’s data, figures in Q2 improved for private consumption (+0.3% in seasonally adjusted quarter-on-quarter terms vs +0.1% in Q1), fixed investment (+0.8% vs -0.8% in Q1) and imports of goods and services (-0.8% vs -5.0% in Q1). In contrast, readings softened for government consumption (+0.4% vs +1.3% in Q1) and exports of goods and services (-1.5% vs +1.8% in Q1). In terms of industries, the chemical and pharmaceutical industry made the largest contribution to growth.
Panelist insight: Giving their long-term outlook, EIU analysts said:
“In 2027-30 growth in Switzerland will be broadly stable, averaging 1.4%, driven by private and government consumption. Government consumption is set to increase due to higher defence spending and a new 13th pension payment, effective from 2026. The extra pension payment is expected to cost CHF4-5bn annually. Exports will rebound in 2027 after a slowdown in 2026 and then gradually moderate in 2028-30. Low inflation and a strong currency will keep import growth at about 2.6% on average in 2027-30.”