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Switzerland’s GDP fell by 0.5% in the third quarter of 2025, reversing the upwardly revised 0.2% growth seen in the previous quarter. This marks the country’s first economic contraction since Q1 2024 and the steepest decline since the early months of the COVID-19 pandemic. The downturn was driven primarily by the chemical and pharmaceutical sector, where earlier export strength was followed by a significant decline due in part to US tariffs. Weakness in services activity compounded the slide, failing to counterbalance the broader industrial slowdown. On the expenditure side, goods exports dropped 4.2%, outpacing the 0.8% decline in imports. Investment also softened, with slight decreases in equipment and software (-0.1%) as well as construction (-0.2%). Government consumption edged down 0.2%, while private consumption offered a modest bright spot, rising 0.4%. Compared with a year earlier, GDP growth eased to 0.8% in Q3 from 1.5% in Q2.