Swiss Economy Expands 0.4 Percent in First Quarter
The Swiss economy grew by 0.4% in the first quarter of 2026 as manufacturing output rebounded following a reduction in U.S. tariffs. While the pharmaceutical sector saw a decline, growth in machinery and watches helped maintain solid momentum despite global geopolitical uncertainty.
Switzerland GDP grew 0.4% in the first quarter of 2026 as manufacturing activity rebounded. This pace doubles the 0.2% growth rate recorded at the end of 2025 and aligns with long-term quarterly averages.
### Manufacturing Rebound Offsets Pharma Slump The manufacturing sector expanded 1.5% during the period, ending several quarters of stagnation or contraction. This recovery was driven by machinery, metals, and watchmaking, which compensated for a decline in the pharmaceuticals and chemicals segment. Pharmaceuticals and chemicals currently represent 40% of total Swiss industrial output.
