SECO Lowers Growth Forecast for Switzerland

The Swiss Federal Government's Expert Group on Business Cycles (SECO) has slightly reduced its economic growth forecast for 2025 due to a delay in the recovery of the European economy. According to the announcement from SECO, the growth expectation for 2025 has been adjusted from 1.6% to 1.5%. The agency has also lowered its forecast for this year from 1.2% to 0.9%. The statement indicated that the international economy is not expected to return to normal until 2026, with Switzerland's growth forecast for 2026 set at 1.7%. SECO noted that currently, downside risks outweigh the potential for upside, stating that "The uncertainty surrounding the international economy and trade policy is very high." SECO has revised its consumer price expectations from 1.2% to 1.1% for this year, from 0.7% to 0.3% for next year, while setting the expectation for 2026 at 0.7%.