The bank Raiffeisen has cut its Swiss growth forecast for this year and next, blaming the ongoing war in the Middle East.
Economists at the cooperative now expect GDP to rise by just 0.8% in 2026 and 1.3% in 2027 - a tenth of a percentage point lower than its early-May figures.
Inflation has been revised the other way, with consumer prices now expected to climb 0.7% this year.
The bank says the Middle East conflict is squeezing global demand and slowing Europe's industrial recovery.
Govt looks to cut forest protection
The Federal Council is scrapping the CHF 25 million a year that Parliament voted to help forests adapt to climate change, despite two clear parliamentary decisions.
Federal Councillors heckled by protestors
Federal Councilors were out across the country marking National Day on Saturday - but not without controversy.
Further pressure on Swiss football head
Pressure is mounting on Zurich-based FIFA and its Italo-Swiss president Gianni Infantino after North America's football body demanded a complete overhaul of his presidency.
Politicians carry stereotypes
Elected politicians in Switzerland carry more gender stereotypes than the voters they represent, a new University of Geneva and University of Lausanne study finds.
Illegal rave hits pastures
A thousand young people left a mountain pasture in the Vaud Jura unsuitable for grazing after an illegal rave.
More Swiss firefighters head to France
A second team of 33 firefighters from French speaking Switzerland will travel to south-western France this weekend to relieve colleagues battling the wildfires.
