IMF Cuts Switzerland’s Growth Forecast on US Tariffs

(Bloomberg) — Swiss growth is coming under pressure from global uncertainty including high US tariffs and safe-haven flows into the franc, according to the International Monetary Fund.

Economic expansion is projected to gradually converge to potential by 2028, the IMF said Tuesday in a statement on its annual Article IV Consultation with Switzerland. In this context, the Swiss National Bank’s interest-rate cut to zero was warranted given low inflation and weakening labor market conditions, it added.

The fund published new growth forecasts in which it said the Swiss economy will — adjusted for large sports events — grow 1% in 2026 and 1.2% this year. That’s down from 1.2% and 1.3%, respectively, in the last assessment, which came before Donald Trump slapped a 39% tariff on the country. By 2030, Swiss growth will accelerate to 1.5%, the IMF said.

“Switzerland remains highly resilient, supported by strong institutions, prudent policies, and a skilled labor force,” the fund said. “However, global uncertainty, trade fragmentation, and persistent safe-haven flows have increased economic pressures.”

For full statement, click here.

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