Raiffeisen economists predict that the Swiss economy will continue to underperform in 2025, with growth projected at 1.3% for the year, slightly higher than the 1.1% seen in 2024.

This growth is due to the strong performance of the chemicals and pharmaceuticals sector, as well as increased consumption driven by strong employment growth and rising real wages.

Inflation is expected to be significantly lower at 0.5%. However, despite these positive factors, the Swiss economy is still far from its potential growth range of 1.5% to 2.0%.

The global economic outlook remains weak, particularly in the eurozone where industrial sectors are facing challenges. There are also uncertainties surrounding the US elections and potential changes in US customs policy, which pose additional risks to the economic landscape.