Economy Swiss economy shrinks significantly in the third quarter
As expected, US President Donald Trump's tariff hammer against Switzerland had a significant impact on the local economy in the third quarter.
28.11.2025, 09:26
SDA
Gross domestic product (GDP) shrank by 0.5% in the third quarter on an adjusted basis compared to the previous quarter. On Friday, the State Secretariat for Economic Affairs (Seco) thus confirmed the flash estimate published two weeks ago.
The chemical-pharmaceutical industry in particular recorded a significant decline of 7.9% from July to September, according to the report.
At the same time, the Seco also categorizes the situation: The development in the sector should be seen against the backdrop of pull-forward effects in the previous quarters. In anticipation of US tariffs, inventories were heavily stockpiled; exports shot up accordingly.
Exports from the chemical and pharmaceutical industry make up the lion's share of Swiss exports - in 2024, for example, they accounted for 52%.
The slowdown in the Swiss economy is thus continuing at an accelerated pace. Growth had already shrunk to a meagre 0.2% in the second quarter, after a plus of 0.8% in the first quarter of the year.
