FX.co ★ Switzerland Records Sharpest GDP Decline Since 2020

In the third quarter of 2025, Switzerland experienced a 0.5% decline in GDP, reversing the 0.2% growth witnessed in the previous quarter after a positive revision. This represents the nation's first economic contraction since the second quarter of 2023 and the most significant drop since the early stages of the COVID-19 pandemic. The contraction was predominantly driven by the chemical and pharmaceutical industries, which saw a substantial downturn following previous robust export activity. Additionally, weaknesses in the services sector exacerbated the overall industrial slowdown. On the expenditure front, goods exports fell by 4.2%, exceeding the 0.8% reduction in imports. Investment levels also showed a downward trend, with minor declines in both equipment and software (-0.1%) and construction (-0.2%). Government spending slightly decreased by 0.2%, whereas private consumption provided a slight positive note, increasing by 0.4%. When compared to the same period the previous year, GDP growth decelerated to 0.8% in the third quarter from 1.5% in the second quarter.