WILL THE FRANC FALL THIS SUMMER? 1/3

The Swiss economy started 2026 on surprisingly firm footing, expanding by +0.4% in real GDP terms and outperforming initial stagnation fears. This growth was entirely powered by a striking +1.5% resurgence in the broader manufacturing sector, which was heavily anchored by a +4.6% production surge in machinery, electronics, and watchmaking. Exporters capitalized aggressively on the final months of preferential U.S. tariff reductions to flood North American channels before the agreement's expiration. This industrial burst effectively offset a steep −3.4% contraction in the underperforming chemical and pharmaceutical branches.