Switzerland's economy shrank by 0.5% during the third quarter compared with the previous three months, an initial government estimate showed today, as hefty US tariffs dealt a significant blow to business.
The performance in the July-September period followed growth of 0.1% during the second quarter, when the US began rolling out tariffs on countries around the world.
The Swiss government said the third quarter setback was driven by a contraction in the chemical and pharmaceuticals industry and that growth was below average in the service sector.
President Donald Trump in August imposed 39% tariffs on Swiss exports to the US, the highest rate in Europe, putting pressure on the Alpine republic's economy.
The outlook has, however, brightened somewhat in the last few days.
On Friday, the US and Switzerland announced a framework agreement that foresees Washington lowering its tariffs to 15%, although that reduction has yet to take effect, nor is it yet clear when exactly it will do so.
The Swiss gross domestic product figures were adjusted for seasonal swings and for the impact of sporting events.
The Swiss government is due to publish final data for the third quarter GDP on November 28.
