Switzerland’s economy expanded at its fastest pace in nearly five years during the second quarter of 2026, growing 1.5% quarter-on-quarter, according to data released by the State Secretariat for Economic Affairs (SECO) on Thursday.
The acceleration from 0.5% growth in the first three months of the year marked the strongest expansion since the third quarter of 2021, when the economy rebounded from pandemic-era contractions. The robust performance was primarily fueled by the chemical and pharmaceutical sector, which surged 10.5% on higher exports and sales, SECO reported.
Manufacturing outside the pharmaceutical industry recorded only moderate growth, while services expanded at a modest but broadly distributed pace across sectors. Economists cited the economy’s resilience despite headwinds including sharply higher oil prices and ongoing geopolitical tensions.
Germany, Switzerland’s largest export market, has outperformed earlier expectations, providing additional support to Swiss trade activity. Analysts at VP Bank noted that a stronger European single market would likely translate into further benefits for Switzerland, though they cautioned that the second-quarter pace of 1.5% growth was unlikely to be repeated in the near term.
Swiss inflation doubled in August, driven by surging fuel prices linked to Middle East conflicts, raising the possibility of an earlier-than-expected interest rate hike by the Swiss National Bank. The Swiss Purchasing Managers Index rose to 57.1 points in August, signaling continued expansion in the manufacturing sector.
The data underscores Switzerland’s uneven but resilient recovery, with pharmaceuticals leading the rebound while broader economic risks persist.
