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Swiss National Bank (SNB) Chairman Martin Schlegel warned on Friday that rising global economic risks, fueled by U.S. tariffs and trade uncertainty, will likely slow Switzerland’s economic growth. Speaking at the SNB’s annual general meeting in Bern, Schlegel stressed that maintaining stable prices is now more critical than ever.
With Switzerland’s export-driven economy facing a 31% U.S. tariff, Schlegel said the country is particularly vulnerable to protectionist measures. He highlighted that the uncertainty around trade policy is "very high," posing a real threat to long-term global economic integration. As a result, Swiss GDP growth is expected to be weaker than previously forecast. In March, the SNB projected growth of 1% to 1.5% for 2025, already below Switzerland’s historical average of 1.8%.
Schlegel noted that while central banks cannot control global trade policies or prevent tariffs, ensuring price stability remains their primary role. The SNB targets inflation between 0% and 2%, which it sees as crucial for economic prosperity and social stability. March inflation was recorded at 0.3%, raising concerns about possible deflation.
If necessary, the SNB will adjust monetary policy, including interest rate changes and foreign currency interventions, to maintain price stability. However, Schlegel acknowledged that stable prices alone cannot eliminate trade policy uncertainty, warning that prolonged uncertainty could delay investments and consumer spending.
The speech underlines Switzerland’s heightened exposure to global protectionism and reinforces the SNB’s commitment to price stability as a safeguard for the economy.
