Switzerland, strong growth slowdown in second quarter: GDP only +0.1%
Growth of the Swiss economy slowed down sharply in the second quarter, with gross domestic product growing by only 0.1% compared to the previous quarter, which had expanded by 0.8%.
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Growth of the Swiss economy slowed down sharply in the second quarter, with gross domestic product growing by only 0.1% compared to the previous quarter, which had expanded by 0.8%.
This was announced by the Ministry of the Economy, which in publishing this preliminary estimate, which takes into account seasonal and calendar variations and the effects of sporting events, explained that the negative trend in industry was barely offset by growth in services.
Switzerland improves deficit estimates 2025
Switzerland significantly improved its deficit forecast for 2025 thanks to tax revenues generated by commodity trade.
However, the country remains cautious about VAT due to the slowdown in economic growth. In detail, the federal government has reduced its budget deficit forecast for the current year by a factor of four to CHF 200 million (EUR 212 million), compared to the originally planned CHF 800 million deficit.
Tax revenue forecasts have 'exceeded expectations in 2024', the Federal Council (government) and the Federal Finance Administration explained in a note. The estimates were thus revised upwards for 2025 as a result of 'additional revenue for the fiscal years 2022 and 2023 from the Canton of Geneva and, more specifically, from energy and commodities trading companies'.
