Swiss Economy Grows at Fastest Rate Since 2021

By Ed Frankl

The Swiss economy accelerated in the three months through June, reflecting its relative insulation from the energy-price shock and the uncertainty caused by shifting U.S. tariffs.

Switzerland's gross domestic product surged 1.5% quarter-on-quarter, after a 0.4% rise in the first three months of the year, the country's economy ministry SECO said Friday. It marked the strongest growth since the third quarter of 2021.

"The industrial sector made the largest contribution to growth, which was driven in particular by the chemical and pharmaceutical industry," SECO added.

That likely comes from the contribution of front-running of drug exports to the U.S., ahead of tariffs of up to 15% on pharmaceuticals that came into effect on July 31, said Ankita Amajuri, Europe economist at Pantheon Macroeconomics, in a note to clients.

In July, the Trump administration separately added new additional tariffs of up to 12.5% on many Swiss imports, replacing 10% tariffs in force since February. Swiss GDP last contracted in the third quarter of 2025, as the first round of U.S. tariffs filtered through the economy.

While a more detailed breakdown of the economy's performance is due to be published on Sept. 3, SECO said the services sector also grew in the second quarter. The data is adjusted for sporting events, given that the country is home to international organizations including FIFA and the International Olympic Committee.

Switzerland has been less exposed to the global energy shock than other European nations. The country is less reliant on imports and has a more diverse energy mix that makes use of its hydroelectric Alpine dams.

However, amid the heightened geopolitical uncertainty prompted by the war in Iran, economic activity could have been more fragile given that the Swiss franc's role as a safe haven for investors meant the currency appreciated, undermining the competitiveness of Swiss exporters.

Switzerland's central bank has said it would act to stem an uncontrolled rise in the franc. The Swiss franc has declined against the euro since March, and investors don't expect it to change its policy rate from the current 0% this year.

Looking ahead, surveys indicate the Swiss economy carried momentum into the third quarter, even if growth will likely soften in the second half of the year, Amajuri said.

The closely watched KOF economic barometer climbed above its second-quarter average in July, while activity as recorded by purchasing managers eased in July but remained in growth mode, she said.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

August 14, 2026 05:02 ET (09:02 GMT)