The Swiss economy is expected to continue operating below its full potential in 2025, with a projected GDP growth of 1.3%, slightly higher than the 1.1% growth in 2024.

This growth is driven by strong performance in the chemicals and pharmaceuticals sector, as well as an improved consumer outlook due to robust employment growth, rising real wages, and lower inflation expected at 0.5%.

However, despite these positive indicators, the Swiss economy is still far from its potential growth range of 1.5% to 2.0%. The global economic growth is expected to remain weak, especially in the eurozone, which is struggling to gain momentum.

The Swiss industrial sector is facing challenges, with no signs of recovery in the order situation. Moreover, there are uncertainties surrounding the outcome of the upcoming US elections and potential tightening of US customs policy, which pose additional risks to the economic landscape.