Gross domestic product in the third quarter of 2025: GDP decline led by chemical and pharmaceutical industry
Bern, 28.11.2025 — In the third quarter of 2025, Switzerland's GDP adjusted for sporting events fell 0.5%, following 0.2% growth in the previous quarter.[1],[2] The negative result is largely down to the chemical and pharmaceutical industry, where strong exports gave way to a compensatory decline. Below-average growth in the services sector failed to offset the downturn in the industrial sector.
The chemical and pharmaceutical industry (−7.9%) saw a sharp drop in value added in the third quarter, contributing significantly to the GDP contraction. This needs to be seen in the context of recent volatility in foreign trade. Strong exports of chemical and pharmaceutical products, driven also by front-loading effects linked to US trade policy, gave way to a compensatory decline in recent months. A drop in value added in the energy sector (−13.9%) also contributed to the negative quarterly result, linked to low electricity production from nuclear power plants over the summer. In contrast, the rest of manufacturing (+0.6%) grew slightly. Overall, goods exports[3] (−4.2%) fell significantly for the second consecutive quarter.
Parts of domestic demand stabilised the economy. Private consumption (+0.4%) grew solidly, supported by spending on housing and energy, health, restaurant and hotel services, and communications. In line with this, health and social services (+0.5%), communications (+0.8%) and the accommodation and food services sector (+1.4%) all recorded growth in value added – the latter also benefiting from more visitors from abroad.
By contrast, government consumption (−0.2%) dipped slightly in the third quarter, reflected in lower value added in public administration (−0.6%). Equipment investment (−0.1%) also fell slightly after a negative previous quarter, held back particularly by IT investment, while research and development investment rose. Finally, construction investment (−0.2%) declined, as did value added in construction (−0.6%). Overall, domestic final demand (+0.1%) and imports[4] (+0.6%) of goods and services expanded only marginally.
Service exports[5] (+0.1%) barely rose in the third quarter, and growth in the services sector was below average. There was considerable heterogeneity between individual sectors. Driven by increased interest and commission business, financial services (+3.6%) expanded significantly above average. Trade (+1.6%) also recorded further growth. The transport sector (−0.1%), however, ended the quarter slightly down. Business-related services (−0.6%) declined for the second consecutive quarter.
Note: The relevant data and the winter 2025/2026 edition of Konjunkturtendenzen (Economic situation in Switzerland), which contains further information on GDP in the third quarter, can be found at www.seco.admin.ch/gdp.
[1] Unchanged since the ‘GDP flash’ published approximately 45 days after the end of the quarter (−0.5%).
[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. Adjustments for sporting events apply to GDP, the arts, entertainment and recreation sector, and exports and imports of services. Further details 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 third quarter of 2025 and +0.2% in the second quarter of 2025.
[3] Excluding valuables. Excluding transit trade, the drop in goods exports is even sharper at −6.9%.
[4] Goods and services excluding valuables. Not adjusted for sporting events: +2.3%.
[5] Not adjusted for sporting events: +3.3%.