Economic policy environment
Economic developments
The Swiss economy recorded modest growth in 2024, while the labour market remained stable and inflation declined markedly. This prompted the SNB to ease its monetary policy. For 2025 as a whole, GDP growth looks set to be slightly higher year on year, though given the current tense environment, this forecast is subject to heightened uncertainty.
Financial stability
Around the globe, some risks to financial stability have increased once again, putting the robust banking system to the test. In Switzerland, the risks remain stable overall. The key issues remain the mortgage market and the narrower room for monetary policy manoeuvre now that interest rates have been cut to 0%.
Regulation
Switzerland is leading the way in the swift and practice-based implementation of the final Basel III standards. Regulation of the banks and financial markets plays a key role in the country’s attractiveness and competitiveness for business. There are fears of tough measures in the regulatory package on banking stability.
