Gross domestic product in the first quarter of 2025: Stronger growth than in previous quarters
Bern, 02.06.2025 — In the first quarter of 2025, Switzerland's GDP adjusted for sporting events grew by 0.8%, following 0.6% in the fourth quarter of 2024[1],[2].The services sector delivered broad-based growth. Domestic demand developed positively. Meanwhile, the chemical and pharmaceutical industry expanded at an above-average rate.
Growth in the chemical and pharmaceutical industry (+7.5%) accelerated in the first quarter, driven by a sharp increase in pharmaceutical exports. Value added in other industrial sectors, which are typically more sensitive to cyclical fluctuations, continued to fall. Overall, this resulted in strong growth for manufacturing (+2.1%) and goods exports[3] (+5.0%). In particular, exports to the US rose sharply, pointing to possible front-loading in connection with US trade policy. In contrast, the energy sector (−9.4%) recorded a sharp decline in value added due to the dry winter months and reduced electricity generation from hydroelectric power stations.
The services sector grew broadly across all sub-sectors in the first quarter. This was accompanied by a robust increase in services exports[4] (+1.4%). Trade grew at an above-average rate (+2.1%), supported by wholesale and retail trade (+0.5%). Value added in health and social care services (+1.1%), public administration (+0.2%) and business-related services (+0.4%) rose in line with the historical average. Benefiting from positive interest and commission business, financial services (+0.5%) recorded growth for the second consecutive quarter. In contrast, value added in the accommodation and food services sector (–1.7%) declined after a strong previous quarter, held back particularly by a fall in hotel overnight stays by domestic guests. Combined with the weakening industrial sector, this slowed growth in the transport and communication sector (+0.2%).
In line with sectoral trends, moderate growth in private consumption (+0.2%) was supported particularly by expenses on health and housing, while spending on hotel and restaurant services declined. Investments in equipment also recorded a slight increase (+0.4%). This was driven by categories that are relatively less sensitive to economic cycles, such as aircraft and research and development. Construction investment (+0.8%) rose robustly, as did value added in the construction sector (+1.1%). Finally, government consumption (+0.4%) again grew at an above-average rate. In line with the rise in domestic demand, imports[5] (+6.1%) of goods and services rose sharply.
Note
The relevant data and the summer 2025 edition of Konjunkturtendenzen (Economic situation in Switzerland), which contains further information on GDP in the first quarter, can be found at www.seco.admin.ch/gdp.
[1] Slight upward revision for the first quarter figure compared to the GDP flash released approximately 45 days after the quarter end (from +0.7% to +0.8%).
[2] To facilitate cyclical interpretation, this press release provides quarter-on-quarter growth rates in real terms, seasonally adjusted and (where applicable) adjusted for sporting events. The adjustment for sporting events concerns GDP, the ‘arts, entertainment and recreation’ sector, and services exports and imports. Further information on the adjustment for sporting events can be found at www.seco.admin.ch/gdp under ‘Documents’. GDP growth not adjusted for sporting events: +0.5% in the first quarter of 2025 and +0.3% in the fourth quarter of 2024.
[3] Excluding valuables.
[4] Not adjusted for sporting events: -8.2%.
[5] Excluding valuables, adjusted for sporting events. Not adjusted for sporting events: +5.6%.