Economist Warns War Could Hurt Swiss Economy.

A leading Swiss economist has warned that the ongoing conflict in the Middle East could seriously affect Switzerland’s economy by disrupting global supply chains and increasing energy prices.

Jan-Egbert Sturm, director of the KOF Swiss Economic Institute, said Switzerland’s economy remains stronger than expected despite global instability. The country recorded 0.5% GDP growth during the first quarter of 2026.

However, Sturm cautioned that the longer the conflict continues, the more Switzerland will experience its economic consequences. He highlighted concerns over the Strait of Hormuz, a key global oil and gas shipping route, warning that prolonged disruptions could affect fuel supplies and prices worldwide.

Although Asian economies may feel the immediate pressure first, Switzerland could also face delayed economic impacts through rising transport costs and weakened consumer demand.

According to Sturm, increasing petrol and energy prices raise business expenses, which companies often pass on to consumers through higher product prices. As living costs rise, households may reduce spending in other sectors, slowing overall economic activity.

The economist also warned about the possibility of a wage-price spiral if workers demand higher salaries to offset inflation. He expects Swiss inflation to reach around 2% this year, remaining within the target range set by the Swiss National Bank.

Despite current economic resilience, Sturm stressed that extended geopolitical instability could threaten Switzerland’s long-term prosperity.