Swiss Economy Recovers After U.S. Tariffs, Growth Expected to Continue

Alanbatnews -

The Swiss economy rebounded in the final quarter, driven by strong domestic demand and a partial rollback of U.S. tariffs, the government said on Friday.

Switzerland's State Secretariat for Economic Affairs (SECO) reported that the economy grew by 0.2% in the last quarter, adjusted for sporting events. This followed a contraction in the previous quarter caused by tariffs imposed by the U.S.

The recovery was primarily fueled by robust domestic demand, with increased consumer spending and investments from both the corporate and public sectors. SECO noted that this offset a slowdown in foreign trade, where export growth lagged and imports rose sharply.

In August, the Swiss export-oriented economy was hit by a 39% tariff on exports to the United States. The tariffs, impacting watch and machinery exports, contributed to a 0.4% decline in economic output during the third quarter, according to Reuters.

A framework agreement reached in mid-November, reducing tariffs to 15%, helped to revive economic activity. Preliminary results indicate that the Swiss economy grew by 1.4% overall, adjusted for sporting events, compared to 1.2% the previous year. This performance was attributed to strong activity earlier in the year, as companies increased production and shipments to the U.S. ahead of the tariffs. Low unemployment and rising wages in Switzerland also supported domestic demand.