Swiss Q1 GDP Beats Expectations as Manufacturing Drives Growth

Switzerland’s economy expanded faster than expected in the first quarter, with GDP excluding sporting events rising from 0.2% qoq to 0.7% qoq, well above the 0.5% qoq consensus forecast. On a sport-adjusted basis, GDP accelerated from 0.2% qoq to 0.4% qoq. The data suggest the Swiss economy entered 2026 with stronger momentum than anticipated, though the composition of growth reveals a mixed picture beneath the headline.

The industrial sector was the main driver of the improvement. Industrial value added rose 1.3%, supported by a 1.5% increase in manufacturing output. Growth was particularly strong in the broader manufacturing sector outside chemicals and pharmaceuticals, where value added jumped 4.6%. Several industrial segments reported higher exports and revenues, helping offset weakness in Switzerland’s key pharmaceutical industry. Chemical and pharmaceutical output fell 3.4% as exports from the sector declined sharply at the start of the year, contributing to an overall 2.2% drop in goods exports.

Domestic demand, however, remained soft. Final domestic demand grew just 0.1%, while both equipment investment and construction investment declined 0.2%. Private consumption was essentially flat, reflected in weaker retail activity and softer demand for accommodation and food services. The services sector expanded only modestly by 0.2%, with gains in transport and financial services offset by weakness in trade and tourism-related industries. The figures suggest Switzerland’s recent growth is being driven primarily by industrial activity rather than broad-based strength across the economy.

Full Swiss GDP release here.