Switzerland Grows More Than Expected Despite Franc, Energy Spike
(Bloomberg) — Switzerland’s economy grew faster than anticipated in the first quarter, weathering a spike in energy prices and a strengthening franc that each took effect at the outbreak of the Iran war.
Gross domestic product adjusted for large sport events rose 0.5% from the previous three months, according to a preliminary estimate. The result is slightly above the 0.4% median prediction of economists in a Bloomberg survey.
The State Secretariat for Economic Affairs said both industry and services contributed to growth in the quarter.
The reading suggests some resilience in the Swiss economy after the first attacks on Iran sent oil and gas costs soaring and stoked inflows into the haven franc that strengthened the currency. A drop back to lower levels in late March may have helped exporters toward the end of the quarter.
While uncertainties persist, the economy still shows signs of weathering the Iran crisis. A purchasing managers index for manufacturing has stayed above the level indicating growth for two months, after several years below that threshold.
Inflation has picked up because of higher energy costs, though it remains low compared with other economies such as the euro area. Economists don’t expect interest-rate increases by the Swiss National Bank anytime soon.
A bigger question mark hanging over the economy in the longer term is a vote next month, when the Swiss electorate will be asked whether to approve a population cap of 10 million people. The population is already above 9 million.
Polls predict a tight race as the proposal by a right-wing party resonates with many Swiss, who complain of high rents and crowded trains, partially driven by many immigrants attracted to the country’s large roster of blue-chip firms.
The GDP report excludes data from large sport events, because they can distort the overall picture of the country’s economy. Switzerland is the home to several global sports bodies including the International Olympic Committee.
The first-quarter reading marks the second straight quarter of growth after the US tariff shock last summer pushed the economy into a brief contraction. A final growth reading along with further details on the drivers will be published on June 1.
–With assistance from Kristian Siedenburg, Joel Rinneby and Harumi Ichikura.
©2026 Bloomberg L.P.
