Swiss GDP Jumped Most in Two Years Before Trump Imposed Tariffs
(Bloomberg) —
Switzerland enjoyed its strongest growth spurt in two years at the start of 2025, unexpectedly accelerating before an anticipated hit from US tariffs.
Gross domestic product adjusted for large sport events increased 0.7% in the first quarter, according to a first government estimate published on Thursday. That’s up from 0.5% three months earlier and faster than estimated by any economist in a Bloomberg survey.
“This growth was driven significantly by the services sector, with industry also showing overall expansion,” the State Secretariat for Economic Affairs said in a statement.
The introduction of sweeping tariffs by US President Donald Trump on April 2 drove Switzerland’s government to abandon its growth forecast for the year. Swiss businesses have warned that the levies — which according to Trump’s initial statement would have been higher than those imposed on the European Union — combined with a subsequent strengthening of the franc scuttle their competitiveness.
The government is trying to head off the tariffs in talks with the US administration. Swiss ministers have met twice with Treasury Secretary Scott Bessent, with Finance Minister Karin Keller-Sutter calling the most recent encounter in Geneva last week “constructive.” She has expressed hope that Switzerland might be the second country after the UK to strike a trade deal with Trump.
In addition to the general tariffs, Switzerland is particularly vulnerable if the US slap industry-specific duties on medicines, as pharma is the country’s most important export sector. An executive order by Trump threatening regulatory action if drugmakers don’t lower their prices this week caused further unease at Swiss companies like Roche Holding AG and Novartis AG.
The report exclude data from large sport events because they can distort the overall picture of the country’s economy. Switzerland is the home to many global sports bodies, so when for instance the Olympic Games take place, earning revenue for the International Olympic Committee, that boosts Swiss GDP without benefiting economic activity.
A final growth reading along with further details on its drivers will be published June 2.
–With assistance from Joel Rinneby and Kristian Siedenburg.
©2025 Bloomberg L.P.
