Switzerland’s economy expanded 1.5% in the second quarter of 2026, accelerating from 0.5% in the previous quarter and matching preliminary estimates. It was the strongest quarterly growth since the third quarter of 2021, driven by a 10.5% surge in the chemical and pharmaceutical industry as exports and sales recovered. Goods exports rose 5.5%, manufacturing output increased 0.7% and services output grew 0.7%, with transport, communications and financial services contributing. Services exports climbed 1.6%, while domestic demand recovered 0.5% after a weak start to the year. The Swiss Purchasing Managers Index rose to 57.1 points in August, adding to signs of economic resilience. Germany’s stronger-than-expected performance and a broader recovery in European industry could support Swiss growth, although analysts said the second quarter’s pace is unlikely to be repeated quickly. Swiss inflation doubled in August as the conflict in the Middle East pushed fuel prices higher, raising the prospect of an earlier interest-rate increase by the Swiss National Bank.