Raiffeisen predicts that the Swiss economy will grow by 1.3% in 2025, a slight increase from the 1.1% growth expected in 2024.

This growth will be driven by the strong performance of the chemicals and pharmaceuticals sector. Consumer spending is also expected to improve, supported by employment growth in the service sector and rising real wages. The projected inflation rate of 0.5% will further contribute to this positive outlook.

However, despite these positive developments, the Swiss economy is still below its potential growth range of 1.5% to 2.0%. Raiffeisen's economists point out ongoing challenges, particularly in the eurozone where economic activity is slow. The industrial sector in Switzerland is also facing difficulties, with no signs of improvement in order books. Additionally, uncertainties related to the upcoming US elections and potential changes in US customs policy pose further risks to the economic landscape.