How did the Swiss economy perform in Q3 2025?

The Swiss economy contracted sharply in Q3 2025, with GDP falling 0.5% compared to the previous quarter.

How did the Swiss economy compare to the Eurozone in Q3 2025?

The Swiss economy "fared a lot worse" than the Eurozone in Q3 2025, with the Eurozone growing 0.2% over the same period.

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Swiss Economy Contracts Sharply Amid US Tariff Dispute

Q: What was the main reason for the Swiss economic downturn?

The primary driver behind the Swiss economic contraction was a sharp decline in the chemical and pharmaceutical sectors, which contributed to an overall contraction across the industrial sector.

17 Nov

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Summary

Swiss GDP fell 0.5% in Q3 2025 due to sharp decline in chemical and pharmaceutical sectors
US tariff deal on Friday could boost Swiss GDP by up to 0.5 percentage points
Eurozone GDP grew 0.2% in Q3 2025, outperforming Switzerland

Swiss Economy Contracts Sharply Amid US Tariff Dispute

According to the latest data, Switzerland's economy experienced a significant contraction in the third quarter of 2025. GDP fell by 0.5% between July and September, a much larger drop than the 0.1% decline expected by analysts.

The primary driver behind this economic downturn was a sharp decline in the chemical and pharmaceutical sectors, which contributed to an overall contraction across the industrial sector. While the services sector continued to expand, it grew at a below-average rate.

The Swiss economy's performance fared worse than the Eurozone, which saw 0.2% growth over the same period. Analysts attribute this to the impact of a 39% tariff imposed by US President Donald Trump in August 2025, which was finally softened in a deal struck on Friday.