Economic policy environment
Economic developments
The Swiss economy showed moderate growth in 2025, with positive effects from trade and financial services set against weak momentum in exports and capital spending. For 2026, the uncertain geopolitical backdrop and muted foreign demand point to below-average growth.
Financial stability
The banks appear robust and well capitalised, despite increased geopolitical tensions. The mortgage market and zero interest rates remain key issues in Switzerland. Internationally, factors such as government debt levels that are high and still rising as well as the growing importance of non-bank financial intermediaries pose a risk to financial stability.
Regulation
The focus in terms of banking regulation is currently on the international implementation of Basel III and the further development of Switzerland’s “too big to fail” regulations. Maintaining a level playing field is crucial to ensuring that the Swiss financial centre remains attractive and competitive.
