Pharmaceutical industry plunged Swiss economy grows by 0.8 percent - slight recovery

SDA

17.2.2025 - 09:39

Swiss economy grows in fourth quarter also thanks to industry (symbolic image)
Swiss economy grows in fourth quarter also thanks to industry (symbolic image)
Keystone

The Swiss economy performed slightly better than expected in the fourth quarter of 2024. However, growth remained below the long-term average.

Keystone-SDA

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  • The Swiss economy grew by 0.4% in the fourth quarter of 2024, putting it at the upper end of the forecast range.
  • Economic growth for 2024 as a whole amounted to 0.8%, significantly less than the 1.2% in 2023.
  • Weakening trading partners slowed development, while the chemical and pharmaceutical industry in particular supported growth.

On an adjusted basis, gross domestic product (GDP, adjusted) increased by 0.4% between October and December 2024 compared to the previous quarter, according to the initial estimate published by the State Secretariat for Economic Affairs (Seco) on Monday. Both industry and the services sector contributed to this growth.

This puts GDP development at the upper end of the estimates. Economists surveyed by AWP had expected growth of 0.1 to 0.4 percent. In the third quarter, GDP had still increased by 0.2 percent.

According to the provisional results, the Swiss economy grew by 0.8% for the year as a whole. This is significantly less than the 1.2% forecast for 2023. It is also well below Switzerland's average economic growth, which Seco puts at 1.8% for the years since 1981.

The chemical-pharmaceutical industry has fallen

The restrained development of Switzerland's major trading partners has slowed down the Swiss economy, according to Seco. The industrial sector recorded "moderate" growth, largely supported by the chemical-pharmaceutical industry. The service sector grew at a below-average rate by historical standards.

The current data is based on a quick estimate by Seco. Basic data that is still incomplete is supplemented with forecast values. The complete and updated data available at a later date could still change the result. The official estimate for the fourth quarter will be published on February 27.