Faced with US tariffs, sluggish global growth and geopolitical tensions, the Swiss economy is holding up well and is expected to continue to do so, according to the International Monetary Fund (IMF). Domestic demand, zero interest rate and recent wage rises are expected to keep Swiss growth and inflation at reasonable levels. Gross domestic product (GDP) growth is therefore forecast at 0.8% for 2026 and 1.5% for 2027, excluding sporting events. Unadjusted growth excluding these events is forecast at 1.1% and 1.2% respectively, according to the IMF’s economic outlook published on Thursday. Inflation is expected to rise to +0.6% this year – after reaching +0.2% in 2025 – and then return to +0.6% next year. The strong franc will continue to weigh on imported inflation, warn IMF experts. The IMF also forecasts a deterioration in the labour market in 2026, with the year-on-year unemployment rate estimated at 3.1% (+0.3 percentage points compared with 2025), before a slight improvement …