Switzerland also faces spillover effects from weaker global activity. Slower growth in the euro area and diminished demand for intermediate goods all weigh on Swiss producers even if they never directly pay higher duties.
Investment on hold and cooling labor market
Uncertainty is freezing parts of the investment cycle. Tariffs have created a hard-to-quantify downside risk that is deterring capital expenditure until the policy outlook becomes clearer. We estimate that investment contracted by 1.3% in 2025 and anticipate a…
