The Swiss economy is growing marginally faster than anticipated, according to the Organization for Economic Cooperation and Development (OECD).

In its “Economic Outlook” released on Wednesday, the OECD revised its forecast for 2025 GDP growth to 1.5%, up from the previous estimate of 1.4%. For this year, GDP growth is expected to reach 1.3%, an increase from the earlier forecast of 1.1%.

Looking ahead, the OECD predicts a more notable acceleration in 2026, with annual growth estimated at 1.9%.

Furthermore, the OECD predicts that the Swiss economy will be driven by a recovery in private consumption and increased employment. Additionally, falling inflation and improved financing conditions are expected to provide further support, Swiss Info reports.

In regard to inflation, the OECD forecasts a rate of 1.1% for 2024, followed by 0.9% in 2025 and 1.0% in 2026.

Economists highlight several risks, including worse-than-expected developments in Germany, as well as in the United States and China. They also note that the banking sector is vulnerable to global economic downturns.

Moreover, the conditions in international financial markets significantly affect the wealth management business for both private and institutional clients.

The OECD suggests that Switzerland will need to implement long-term structural reforms to address demographic challenges. Possible measures include automatically adjusting the retirement age in line with increasing life expectancy and providing stronger incentives for later retirement.

The organisation also advises Switzerland to speed up its efforts to meet international climate targets, particularly by transitioning more quickly to green energy sources in the transport and construction sectors. 

In addition, the report recommends that Switzerland boost productivity by promoting digital transformation.