Swiss economy grew by 1.6 per cent in 2025
Keystone-SDA
The Swiss economy grew more strongly in 2025 than previously thought, according to the latest data. Gross domestic product (GDP) rose by 1.6% at constant prices, as the Federal Statistical Office (FSO) announced on Tuesday.
The State Secretariat for Economic Affairs (SECO) had most recently estimated growth in the Swiss economy at 1.4%.
In addition to these initial estimates for 2025, the FSO will also present on Tuesday the upwardly revised figures for GDP growth in 2024 at previous year’s prices. The figure has been raised from 1.4% to 1.5%, and that for 2023 from 0.8% to 1%.
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Investment drives growth
According to the FSO, the sustained growth of the Swiss economy is linked to strong domestic demand, which rose by 2.5%. Investment, in particular, contributed to this growth with an increase of 3.5%.
Investment in capital goods, in particular, rose sharply (+3.7%). The construction sector returned to positive growth (+2.9%), largely thanks to an increase in new-builds. In civil engineering, growth was more moderate (+1.9%) due to rising prices.
Household consumption expenditure also remained a key driver of growth, but slowed slightly to 1.7%. In 2024, it had risen by 2.1%. Expenditure on tobacco products and alcoholic beverages, for example, declined. Swiss households spent more on healthcare, transport and the hospitality sector.
Trade surplus falls
Unsurprisingly, in 2025 – the ‘Year of Tariffs’ – the trade surplus declined. This means that Switzerland’s imports (+11.7%) grew more strongly than exports (+5.9%).
This was mainly due to developments in the trade in goods, explained the FSO. Trade in services, on the other hand, recorded a higher surplus than in 2024.
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Looking at the sectors, the manufacturing sector and goods production grew by 2.4% overall. Growth in industry was driven primarily by the chemical and pharmaceutical sectors, as well as coking and mineral oil processing.
The trade sector also performed well: value added in the retail and wholesale sectors, including the trade in raw materials, rose by 5.2%. In the retail sector, turnover increased by 1.6% in nominal terms and by 3% in real terms.
Financial services also recorded strong growth (+6.6%). Following a weak previous year, banks increased their value added by 8.1%, while insurance companies saw a rise of 7.6%.
In the arts, entertainment and recreation sector, however, value added plummeted by 29.3%. This was primarily due to the absence of major international sporting events in 2025, as had also been the case the previous year. The health and social care sector, by contrast, grew by 5.2%.
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Translated from German, reviewed by an English Department journalist.
