Switzerland Facing Much Slower Growth in 2026 on US Tariffs: KOF

(Bloomberg) — Switzerland’s economy will grow much less than expected next year due to the hefty tariffs imposed by the US, according to Zurich’s KOF research institute.

Gross domestic product adjusted for large sports events will rise 0.9% in 2026, KOF said Wednesday, lowering its previous 1.5% projection.

“Trade turmoil is currently shaping the economic landscape,” it said. “The increase in tariffs on Swiss exports to the US means a noticeable deterioration in competitive conditions, also compared to exports from the European Union.”

KOF is the first forecaster to decrease its prediction for next year to below 1%. The government currently expects 1.2% expansion, with the economy so far proving resilient in the face of tariffs.

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