Switzerland must tap into its strengths
Zurich - Trade and geopolitical uncertainty are putting Switzerland to the test, according to a recent EY analysis. While 70 per cent of domestic companies stopped their investments in 2024, foreign investment in Switzerland grew by almost 25 per cent, with investment from the US increasing by as much as 69 per cent.
Switzerland must focus on its strengths, even in light of the latest US trade policy measures, which include tariffs of up to 39 per cent, concludes EY in a recent analysis. It shows that the country must «systematically strengthen its proven locational advantages, such as the liberal and reliable legal system, economic freedom and the protection of intellectual property», Daniel Gentsch is quoted as saying in a corresponding statement. According to the Chairman of the auditing and consulting firm, «making a hasty exit from international regulations or retaliating with knee-jerk measures would do more harm than good in the long term».
The EY analysis reveals that 70 per cent of companies in Switzerland stopped or postponed investments last year due to geopolitical and trade policy uncertainties. The problem lies in globally diversified supply chains, which are difficult to adapt at short notice, explains EY.
«The tariffs being imposed by the United States are just one example of how geopolitical tensions directly impact the strategic reality of Swiss companies,» added Gentsch. «It is crucial to build resilient structures, develop scenarios and flexibly align strategic options to a changing geopolitical situation, particularly in a highly networked market environment.»
At the same time, the EY study clearly shows that Switzerland remains a sought-after location for international investors: the number of investment projects announced by foreign companies rose by almost 25 per cent in 2024, with a 69 per cent increase from the US. According to EY, this success shows «that stable framework conditions and locational advantages such as legal certainty and innovative strength are influential, even in times of geopolitical turmoil».
