The Swiss economy has received a boost from a new trade agreement with the European Union. This agreement aims to improve Switzerland's relationship with the EU, which is important as the EU accounts for over half of Swiss exports. The deal is expected to stabilize relations and provide long-term advantages for Swiss businesses.
The pharmaceutical sector, which makes up over 50% of Swiss goods exports, stands to benefit significantly from the agreement. It will enable the sector to attract top talent and access cutting-edge research.
The commitment to stability provided by the agreement is particularly welcome in a global landscape marked by conflicts and trade tensions.
Despite the positive outlook, concerns about foreign demand persist. The Swiss economy is projected to grow by 1.3% in 2025, outpacing Germany, France, and the eurozone. However, there are worries about the struggles faced by Germany's car manufacturing sector.
The Swiss economy has shown resilience, supported by low inflation, low interest rates, and strong domestic demand.
The EU trade agreement is viewed as a starting point, but further steps are needed to navigate the complexities of the current economic environment.