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.
The government's robust fiscal position implies it will be able to step in and boost growth in the event that any external shock 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...
Switzerland Industry Coverage (5)
BMI View: Switzerland's insurance sector has many strengths and is profitable. High penetration means that the market is mature and, as a result, premiums are set to stagnate in USD terms, both through the forecast period and beyond.
In terms of demand, reasons for the over-development of the sector include extremely high per capita incomes and ability to save, and a formidable internationally-oriented corporate sector. The life insurers collaborate with (and to a certain extent compete with) the private banks and universal banks and play a central role in Switzerland's organised savings landscape. The business opportunity for the insurers is boosted by the substantially compulsory nature of health insurance. Health insurance is the largest sub-sector within the non-life segment, and accounts for over one third of premiums written in...
Switzerland Medical Devices
BMI Industry View: We expect the Swiss medical device market 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...
Pharmaceuticals & Healthcare
Switzerland Pharmaceuticals & Healthcare
BMI View: The preference for patented drugs over low-value generic medicines by patients and prescribers in Switzerland will drive the government to continue to enforce measures that restrict growth in innovative medicine sales - particularly as the ageing population will boost the demand for long-term medicines. This will include price cuts on patented medicines as well as a push towards the greater promotion of lower-value generic medicines.
Headline Expenditure Projections
Pharmaceuticals: CHF7.02bn (USD7.67bn) in 2014 to CHF6.97bn (USD7.16bn) in 2015; -0.74% in local currency terms and -6.6% in US dollar terms.
Healthcare: CHF70.76bn (USD77.32bn) in 2014 to CHF72.58bn (USD74.62bn) in 2015; +2.6% growth in local currency terms and -3.5% in US dollar...
BMI View: The advanced maturity of the Switzerland telecommunications industry means diminished opportunities for subscription growth. However, Switzerland has some of the highest per capita incomes in the world and the demand for new technologies continues unabated making it a profitable and highly lucrative European market.
The lucrative nature of the market is reflected in the large investments made by operators in infrastructure, with the incumbent Swisscom investing aggressively in fibre and LTE since 2012. It has also resulted in acquisitions in the Swiss market, for instance NJJ headed by Xavier Neil was cleared to acquire Orange in early 2015 and is rebranding it as Salt Mobile, while Sunrise announced its intention to IP.