Switzerland: Economic Growth in 2024 Below Average

After signing a free trade agreement with India, the Swiss Confederation is also trying to “entice” the EU to strengthen bilateral ties and cooperation. Following the complete flop in the previous round of similar negotiations in 2021, the Swiss government has resumed talks with the European Commission to update agreements on the free movement of people, approval of land and air transport facilities, agricultural and food safety.

To cut to the chase, Brussels has examined under a magnifying glass the economic performance of the Swiss Confederation, which unfortunately leaves much to be desired. For this year, a group of federal economic forecasting experts predicts Swiss gross domestic product growth that is clearly below average: Swiss GDP growth net of the contribution of sporting events will be 1.1% in 2024.

Gross data provided by the State Secretariat for Economic Affairs (SECO) points to modest GDP growth to 1.5% in 2024 with a decline to 1.3% the following year. However, net of sporting events, which have a significant influence in Switzerland given the headquarters of very wealthy international sports federations in the country, GDP growth will fall to 1.1% this year and should rise to 1.7% in 2025.

But Switzerland, too, seems less pleased with the economic performance of its European interlocutors. SECO’s press release, published on Tuesday, March 19, highlights the “great heterogeneity that currently characterizes the global economic situation”: in fact, while the US economy grew more than expected in 2023, the Chinese economy also recorded significant growth, +5.2% year-on-year, “the eurozone is marching in place.” At best, Europe’s economy in 2025 is expected to gradually recover from the weakness of the previous two years. In this complex context, Bern hopes that the agreement with India, as well as the positive outcome of negotiations with Brussels, “will regain momentum for Swiss exports and investments.”