NEW UNEXPECTED RISKS FOR SWISS ASSETS 1/3

09 Mar

NEW UNEXPECTED RISKS FOR SWISS ASSETS 1/3

The 0.1% uptick in fourth-quarter GDP was a critical development that successfully prevented a technical recession following the 0.4% contraction in the previous period. This stabilization allowed the full-year 2025 growth to reach 0.7%, a figure that notably outperformed the initial consensus forecast of 0.5%, confirming that the Swiss economy retained its footing despite a volatile global backdrop.

Key Points

  • The Swiss economy avoids a technical recession in Q4
  • The war in the Middle East also threatens Switzerland
  • Headwinds for the Swiss economy amid the oil shock
  • Leading indicators are largely lagging
  • Inflation likely to reverse course
  • New dilemma for the SNB ahead of its March meeting
  • The franc remains buoyed by geopolitical risks
  • Inflation risks are turning the fixed-income market upside down
  • Risks of a correction in real estate and equities