Our comprehensive assessment of Switzerland's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Switzerland, as well as the latest industry developments that could impact Switzerland's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Switzerland before your competitors.
Switzerland Country Risk
Steady Growth Ahead
Switzerland's growth trajectory over the medium term will be increasingly powered by consumer spending, with the potential for the government to step in and boost growth in the event that the situation in the eurozone puts a sharp break on Swiss growth.
Although the Swiss National Bank's removed its CHF1.20/EUR floor on January 15, it will continue to intervene in FX markets in order to prevent excessive franc appreciation. Beyond the next several quarters, the franc will begin to gradually depreciate from overvalued levels.
A narrowing of Switzerland's large current account surplus will gather steam in 2015 on the back of a stronger franc, but the surplus will remain sizeable over the coming years.
Switzerland Industry Coverage (5)
BMI View: Higher fiscal expenditures in 2015 will support economic growth amidst the destabilising impact of rapid Swiss franc appreciation. This will, in turn, drive the acquisition of life and non-life policies, though the weakening of the Swiss franc against the US dollar will constrain growth in USD terms. However, over the medium term, we expect to see steady if unspectacular growth across all segments.
The recent decision by the Swiss National Bank (SNB) to abandon the CHF1.2/EUR minimum exchange rate will provide a boost to domestic consumer confidence, spurring the purchase of insurance policies across the board and also encourage the acquisition of insurable goods such as cars. However, currency adjustments are likely to weigh on the competitiveness of Swiss exporters and reduce demand for transport policies over the short term.
Over the medium...
Switzerland Medical Devices
BMI Industry View: The Swiss medical device market is expected to grow by a CAGR of 1.4% over the 2013-2018 period, with other medical devices and orthopaedics & prosthetics expected to have the highest growth during this period. Over the last 15 years the Swiss medical technology sector has grown faster than almost any other sector in the country. Government technology development programmes, favourable tax rates, quality staff and research have all contributed.
Headline Industry Forecasts
In 2013, the Swiss medical device market was estimated at USD3,554.1mn, or USD440 per capita. The total market is twice the size of...
Pharmaceuticals & Healthcare
Switzerland Pharmaceuticals & Healthcare
BMI View: Switzerland's epidemiological profile will continue to be attractive to manufacturers of medicines for non-communicable diseases. Despite the relative rapid uptake of innovative pharmaceuticals, the burden of chronic conditions will account for a large proportion of the total disease burden over the next 15 years. Like many other developed states, Switzerland is introducing cost-containment measures to restrict the commercial opportunities presented to drugmakers.
Headline Expenditure Projections
Pharmaceuticals: CHF7.02bn (USD7.34bn) in 2014 to CHF6.96bn (USD7.16bn) in 2015; -0.81% in local currency terms and -2.4% in US dollar terms.
Healthcare: CHF69.64bn (USD72.81bn) in 2014 to CHF71.37bn (USD73.41bn) in 2015; +2.5% growth in local...
BMI View: Growth opportunities are limited in Switzerland as a result of market maturity; however, the country's high per capita incomes and strong demand from the local population for the latest technologies means it continues to be one of the most lucrative markets in Europe. There has been large investment made by operators in infrastructure, with the incumbent Swisscom investing aggressively in fibre and LTE since 2012. The competition has also been investing in LTE, with all three mobile network operators offering...