Swiss economy grows at fastest rate in nearly five years
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A general view shows Lake Lugano, Monte Bre mountain and the city of Lugano, Switzerland July 3, 2022. REUTERS/Arnd Wiegmann
By John Revill
ZURICH, Sept 3 (Reuters) - The Swiss economy grew by 1.5% in the second quarter of 2026, the government said on Thursday, its fastest growth rate in nearly five years.
A booming chemical and pharmaceuticals sector accelerated the country's economic growth rate from 0.5% in the first three months of the year.
The second quarter increase, which matched a preliminary estimate by the economy ministry earlier this month, was the fastest since the third quarter of 2021 when Switzerland was recovering from the COVID pandemic.
"After several quarters of weak or, in some cases, negative growth, the chemical and pharmaceutical industry expanded sharply, reflecting higher exports and sales," said the State Secretariat for Economic Affairs (SECO), referring to 10.5% growth for the sector.
Growth in the rest of manufacturing was moderate, SECO added, while services showed modest but broad-based growth.
The figures were a further positive sign for the Swiss economy after the Swiss Purchasing Managers Index rose to 57.1 points in August, according to data published on Monday.
Economists were impressed by the resilience of the Swiss economy despite challenging conditions like sharply rising oil prices and geopolitical uncertainties.
European industry is currently showing a remarkable recovery, with Germany - traditionally Switzerland's biggest export market - doing much better than originally anticipated, said VP Bank analyst Thomas Gitzel.
"If the European single market gains momentum, the Swiss economy will also benefit from it this year," he said.
"Even if the strong GDP growth of the second quarter is unlikely to be repeated on that scale so quickly, growth rates will remain robust for the time being," he added.
Swiss inflation doubled in August, government data showed on Thursday, as the conflict in the Middle East pushed fuel prices higher, raising the prospect of an earlier interest rate hike by the Swiss National Bank.
(Reporting by John Revill; Editing by Alexandra Hudson)
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