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Switzerland Logs Strongest Economic Growth Since 2021 in Second Quarter

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Switzerland Logs Strongest Economic Growth Since 2021 in Second Quarter

Switzerland's economy expanded in the second quarter of 2026 at the strongest rate since the third quarter of 2021, largely driven by the positive contribution from the chemical and pharmaceutical sector.

Switzerland's seasonally and sporting event-adjusted gross domestic product rose 1.5% in the second quarter, following a revised 0.5% rise in the prior three-month period, according to final data from the State Secretariat for Economic Affairs SECO published Thursday. The latest reading is in line with the flash estimate.

Not adjusted for sports events, the quarterly GDP grew 1.9%, against the revised 0.6% increase previously.

On a yearly basis, the country's sport event-adjusted GDP increased 2.3% during the three-month period, against the revised 0.4% gain earlier. Not adjusted for sports events, the Swiss economy grew 2.8%, following the prior 0.5% rise.

"The chemical and pharmaceutical industry made the largest contribution to growth, while value added also increased across a wide range of other sectors. Domestic demand recovered after a weak start to the year," SECO said. "After several quarters of weak or, in some cases, negative growth, the chemical and pharmaceutical industry (+10.5%) expanded sharply, reflecting higher exports and sales."

Meanwhile, the annual inflation rate in Switzerland accelerated to 0.8% in August from 0.4% in July, data from the country's Federal Statistical Office showed. Analysts expected a 0.5% rise for the month. On a monthly basis, consumer prices were up 0.4%, against the expected zero growth and the prior month's 0.1% downtick.

Excluding volatile items such as fresh and seasonal products, energy, and fuel, annual inflation edged up 0.4%.

The FSO mainly attributed the month-over-month increase to several factors, including rising housing rentals and higher prices for petrol, diesel and heating oil. On the other hand, prices for international package holidays, car rentals and car sharing declined during the month, along with prices for supplementary accommodation.

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