The Organisation for Economic Co-operation and Development raised its Swiss economic-growth forecast for 2026 to 2.0%, a marked increase from the 1.1% it projected in June for non-seasonally-adjusted GDP, according to an "Economic Survey" published Tuesday.
The revision reflects stronger-than-expected recent economic activity. Switzerland's unadjusted GDP expanded 1.9% in the second quarter after a 0.6% gain in the first, with the chemical and pharmaceutical industries providing the primary momentum, according to the State Secretariat for Economics (Seco). The OECD said it was adjusting its outlook to match the stronger trajectory.
For 2027, the OECD lowered its growth forecast slightly to 1.4% from 1.5%. On inflation, the OECD now projects a average annual rate of 0.6% for both the current year and 2026, down from its previous 0.7% estimate for each period.
The OECD described Switzerland as a stable, prosperous and dynamic economy that has weathered recent global shocks relatively well, adding that low energy intensity has helped keep price pressures muted. Domestic demand remains the main growth driver, while uncertain global conditions and higher energy costs weigh on foreign demand. The organization noted that recent tariffs on Swiss export goods and broader trade-policy disruptions have tested export-oriented firms, and that those risks persist.
On policy, the OECD urged Switzerland to safeguard its solid public finances over the long term, recommending additional revenue through a value-added-tax increase, budget savings and a more efficient health-care system. The organization identified reform needs in the pension system and the construction sector as well.
The OECD also reviewed planned banking regulation, saying it should strengthen financial-sector stability without unduly undermining the attractiveness of the Swiss financial center. Finally, the organization advised Switzerland to deepen ties with existing trading partners and to open new export markets.
