KOF Raises Swiss Growth Projections for Coming Years Despite Tariff Uncertainty

05:02 AM EST, 12/15/2025 (MT Newswires) -- The KOF Institute on Monday upwardly revised its Swiss economic growth projections for the coming years, as uncertainty surrounding the tariff deal with the US and geopolitical risks remains. Real gross domestic product growth in Switzerland, adjusted for major sporting events, is expected to slow down to 1.1% in 2026 from the projected 1.4% in 2025, before accelerating to 1.7% in 2027. Previously, KOF expected 2026 and 2027 rates at 0.9% and 1.6%, respectively. It attributed the upward revision in estimates to the easing of trade policy tensions. At the same time, KOF continues to project a slight increase in the unemployment rate to 3.1%. Inflation expectations were revised due to the weaker-than-expected development of rental prices, with estimates now standing at 0.3% and 0.6% for 2026 and 2027, respectively, from 0.5% and 0.6%. Furthermore, KOF expects the Swiss National Bank (SNBN.SW) to maintain its policy rate at 0% throughout the forecast period.