Revision of cantonal GDP: A more accurate picture of regional economies

In recent years, the Swiss economy has undergone a profound change, shaped by globalisation, the growing specialisation within certain activities and changes to firm (enterprise) structures. In order to better reflect these changes, the FSO has completely revised the method used to regionalise gross value added (GVA), on which the calculation of cantonal GDP is based (see box).

The new method is based on a bottom-up approach using data specific to each firm. From now on, the majority of the value added is no longer estimated but is taken directly from this microdata or fixed at the firm level. At this stage, the validation analyses have focused on aggregated data. More detailed analyses by sector still need to be carried out, which explains why the results are still provisional. The FSO will publish the more detailed, consolidated results in March 2027.

Revised levels but similar trajectories

For 2022, the last year for which GDP was calculated using the old method, the revision results in significantly higher GDP figures in eight cantons (Schaffhausen, Zug, Geneva, Neuchâtel, Basel-Stadt, Schwyz, Vaud and Nidwalden), with the largest revision in Schaffhausen (+48.5%). This reflects the concentration of highly productive industries and Schaffhausen’s role as an economic centre for Eastern Switzerland. All the results by canton are presented at the end of the press release.

In the other cantons, the figures were revised downwards. The extent of the changes varies by canton. Despite these adjustments, the growth profiles remain broadly similar. The cantons that recorded the highest growth before the revision generally retain this position afterwards. Despite the changes in level, the hierarchy of cantons based on their GDP remains relatively stable.

Increased regional concentration of high value-added activities

The new method allows value added to be linked more directly to the locations where it is actually created, which improves the way the regional concentration of certain industries is taken into account. In Basel-Stadt, for example, it is now easier to assign the value added of the sector “industry and construction” to this canton, leading the figure to be revised upwards. In Geneva and Zug, the main adjustments concern the trade sector.

Depending on the size of the cantonal economy, a few large firms can have a significant influence on the results. The increased use of more detailed data offers the advantage of better reflecting the economic reality. However, the disadvantage is that the estimations are more susceptible to fluctuations from one year to the next.

It should also be noted that the value added of public administration activities has been revised downwards across all cantons. This adjustment does not convey a decline in public administration activities, but is mainly the result of methodological adjustments introduced during the 2025 revision of Switzerland’s GDP. The change can be explained in particular by the statistical re-classification of public teaching activities in another economic sector, and a new method for allocating military expenditure.

GDP growth between 2023 and 2024 in most cantons

Between 2023 and 2024, GDP at the previous year’s prices grew in 17 of 26 cantons. Some of the sharpest rises were recorded in Zug (+11.0%), Schaffhausen (+9.0%) and Basel-Stadt (+6.4%). In Zug, the increase is principally driven by industry and services, while trade showed more moderate growth. In Schaffhausen, energy, education and health activities as well as trade contributed the most to economic growth. On the other hand, industrial activities saw less dynamic growth in Schaffhausen. Finally, in Basel-Landschaft, growth is mainly driven by financial activities and services.

Of the nine cantons in which GDP declined between 2023 and 2024, six (Fribourg, Geneva, Nidwalden, Graubünden, St Gallen and Bern) fall within a range between –0.5% and –1.9%. Valais (–2.6%), Ticino (–3.9%) and Jura (–7.7%) recorded the most marked declines in 2024. Valais experienced a downturn in industry, trade and services, while energy, education and health recorded modest growth. Ticino recorded a decline in all economic activities apart from public administration. Finally, in the canton of Jura, industry declined in 2024, affecting the economy of the entire canton, as did services.

Contrasting labour productivity trends in the major regions

Following a 0.8% decline in 2023, hourly labour productivity at national level rose by 1.4% in 2024. However, the changes at previous year’s prices vary widely between major regions, with a marked increase in two regions, weak growth in two other regions, and a decline in three regions. For the second year in a row, Ticino saw the biggest drop in productivity (–3.7%), driven by a marked decline in GDP (–3.9%) and a slight decrease in actual hours worked (–0.3%).

Conversely, hourly labour productivity more than doubled in Central Switzerland in 2024. With an increase of 6.3%, it is the region that experienced the most growth on this metric. Northwestern Switzerland also recorded a strong increase (+4.4%), mainly driven by sustained GDP growth (+4.0%), particularly in Basel-Landschaft. The productivity of this major region has therefore grown every year since 2021, with rates of between 3.5% and 8.7%. Finally, productivity fell slightly in the Lake Geneva region (-0.5%), where the increase in actual hours worked (+1.4%) exceeded GDP growth (+0.9%).

This press release and further information on the topic can be found on the FSO website.