Switzerland economic growth and inflation forecasts raised

Economic institutions in Switzerland are raising their growth and inflation forecasts. The KOF Swiss Economic Institute has significantly increased its real GDP growth forecast for 2026 to 1.9 percent, up from a previous estimate of 0.8 percent. KOF also projects growth of 1.7 percent for both 2027 and 2028, driven by strong pharmaceutical exports and rising private consumption.

Similarly, economists at Zürcher Kantonalbank (ZKB) have revised their 2026 GDP growth forecast upward to 2.2 percent from 1.0 percent. ZKB has also slightly increased its inflation projections, expecting 0.8 percent in 2026 and 1.0 percent in 2027.

The KOF Economic Barometer rose to 109.1 in September, exceeding consensus expectations and indicating a favorable outlook for manufacturing, services, and construction. However, some indicators, such as foreign demand and employment prospects, remain under pressure. While the outlook is generally positive, analysts note risks from US tariff policies, energy prices, and geopolitical tensions in the Middle East.