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: We anticipate a very modest increase in premiums for 2015 across both life and non-life business with continuing slow growth throughout the forecast period. Healthcare costs are likely to rise as a result of the recent referendum in which 62% of the population voted to retain Switzerland's all private health insurance provisions and rejecting its assumption by a state owned alternative.
Switzerland's economy continues to wrestle with deflation despite relatively sound macroeconomic fundamentals. Notwithstanding this GDP grew by 0.6% in Q314, after a small dip in Q2.
The expected growth of Switzerland's ageing population over the next 50 years will have an unprecedented impact on the demand for healthcare and significant...
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: The Swiss government will need to develop policies to maintain the country's long-term attractiveness as a site for clinical trials, especially as we expect cost of conducting clinical research to rise. The drivers of increased attractiveness of non-traditional locations for clinical studies include improving healthcare infrastructure, more and better trained medical professionals, and a growing requirement for local studies in the pharmaceutical approval process. We foresee a continuing shift in weighting towards emerging markets, especially for Phase III trials, while early-stage research is likely to remain in developed states.
Headline Expenditure Projections
Pharmaceuticals: CHF7.06bn (USD7.68bn) in 2013 to CHF7.02bn (USD7.34bn) in 2014; -0.66% in local currency terms and -4.4% in US dollar terms...
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...