UBS economists have adjusted their growth forecasts for the Swiss economy, predicting a GDP increase of 1.3% for 2025, which is lower than their previous estimate of 1.5%. When accounting for sporting events, the expected growth is now 1.5%, compared to the earlier forecast of 1.7%.

The downgrade is due to a slowdown in the eurozone, which poses risks to Switzerland's economic recovery. The bank highlights that a weaker-than-expected economic rebound in the eurozone could hinder Swiss industrial growth, further impacting the nation's overall economic performance in 2025.

For 2024, UBS maintains a GDP growth forecast of 1.4%, with an adjusted figure of 1.0%. In terms of inflation, UBS has revised its projections, anticipating inflation rates to decline to 1.1% this year and 0.7% in 2025, down from previous estimates of 1.2% and 1.0% respectively. This decrease in inflationary risks is viewed as supportive for consumer spending in the near future.