Global trade is also affected by the high oil price. (archive picture)
Keystone
The Swiss economy is losing momentum. The KOF economic barometer fell significantly in March and is now back below the long-term average – a result that hardly anyone had expected.
According to the KOF Economic Barometer, expectations for the Swiss economy deteriorated significantly in March. The leading indicator has fallen well below the long-term average.
The barometer fell by a whopping 7.7 points to 96.1 points, as reported by the KOF Institute at ETH Zurich on Monday. The last time it fell below the long-term average of 100 points was after the tariff shock in August and September 2025.
The renewed drop below the 100-point mark comes as a surprise. According to a survey by the news agency AWP, economists had expected values of 100 to 104 points in advance.
Decline on a broad front
According to the KOF Institute, the economic slowdown is taking place across a broad front. Both the production-side and demand-side indicator bundles included in the economic barometer reflected the gloomy outlook. In particular, the indicator bundles for the manufacturing industry and foreign demand had to take a back seat.
The KOF Economic Barometer is a so-called leading composite indicator. It is based on a large number of indicators and is intended to show how the Swiss economy will develop in the near future.