Economic situation
Federal finances are highly dependent on the economic cycle. How is the economic growth forecast looking, how high is expected inflation and what does that mean for the interest rate structure?
Development of economic output
Real and nominal GDP rates of change (in %, adjusted for sporting events and calendar effects)
In 2025, the Swiss economy grew by 1.4% in real terms and 1.7% in nominal terms. The year was marked by US trade policy, and especially the increase in tariffs. The challenging international environment adversely affected investments and Swiss exports. By contrast, private consumption once again proved to be a pillar of growth, thanks to real wage growth as a result of low inflation.
According to the national consumer price index, inflation stood at 0.2% in 2025 (2024: 1.1%). Average annual inflation was thus at the lower end of the SNB's target range (0% to 2%). The year-on-year decline in inflation was due mainly to lower prices for petroleum products and other imported goods, as well as the appreciation of the Swiss franc.
Over the course of 2025, the unemployment rate gradually climbed from 2.7% (January 2025) to 3.0% (December 2025). The average unemployment rate for the year was 2.8% (2024: 2.4%), which meant that the downward trend in employment continued in 2025.
The SNB responded to the low level of inflation and reduced its policy rate in two steps, bringing it from 0.5% to 0.0%. The US Federal Reserve and the European Central Bank likewise cut their interest rates.
Data
Detailed data for longer periods are available under the following links: