Zurich – Switzerland’s economy expanded by 1.5% in the second quarter of 2026, the fastest pace in nearly five years, according to the Federal Department of Economic Affairs. The jump follows a modest 0.5% increase in the first quarter.

Chemicals and pharmaceuticals lead the surge

The State Secretariat for Economic Affairs (SECO) credited a booming chemicals and pharmaceuticals sector for the acceleration, noting a 10.5% year‑over‑year growth in that industry. Higher export volumes and stronger sales helped lift the sector sharply after several quarters of weak or negative growth.

Other manufacturing segments posted moderate gains, while the services sector recorded modest but broad‑based growth, SECO added.

Positive signs amid global challenges

Economists highlighted the resilience of the Swiss economy despite rising oil prices and geopolitical uncertainties. The Swiss Purchasing Managers Index rose to 57.1 points in August, reinforcing the upbeat outlook.

European industry is also rebounding, with Germany – Switzerland’s largest export market – performing better than expected, said VP Bank analyst Thomas Gitzel. He added that a stronger European single market would further benefit Swiss growth this year.

Inflation pressures and monetary outlook

Swiss inflation doubled in August, driven by higher fuel costs linked to the Middle‑East conflict. The surge raises the prospect of an earlier interest‑rate hike by the Swiss National Bank.

Overall, while the robust second‑quarter growth may be difficult to sustain at the same pace, analysts expect the economy to remain on a solid footing for the remainder of the year.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.