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Switzerland’s economy expanded by 1.5% quarter-on-quarter in the three months to June 2026, accelerating sharply from 0.4% growth in the previous period, according to flash estimates. The reading marked the strongest quarterly expansion since the third quarter of 2021, underscoring the country’s ability to withstand headwinds, including elevated energy costs linked to Middle East tensions and persistent trade uncertainty. The latter stems from the absence of a legally binding trade agreement with the US, even after Switzerland secured a preliminary deal last November that capped tariffs at 15%. Growth was driven primarily by the industrial sector, with the chemical and pharmaceutical industry providing the largest boost to economic activity. The services sector also expanded, further supporting the broad-based improvement in output.
