Swiss Resilience Masks a Prolonged Low-Rate Environment

Switzerland's Q1 GDP beat expectations at 0.5%, but the SNB is expected to hold rates at 0% for the next year due to low inflation. UBS recommends Swiss dividend-paying equities and defensive sectors like healthcare to navigate this low-yield environment.

Key Takeaways

• 1.Switzerland's GDP grew 0.5% in Q1 2026, exceeding forecasts, yet growth is expected to remain below trend at 0.7% for the full year.
• 2.The Swiss National Bank is expected to maintain a 0% policy rate for the next 12 months due to contained inflation (0.6%).
• 3.UBS remains constructive on Swiss equities, specifically defensive and dividend-paying sectors like Health Care, as an alternative to low bond yields.

Table of Contents

• From the studio
• What to watch: 20 May
• Thought of the day
• Caught our attention
• Power deal highlights investment opportunities
• Market update
• Global asset class preferences definitions
• Appendix
• Risk Information

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