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 2016, but the surplus will remain sizeable over the coming years....
Switzerland Industry Coverage (6)
BMI View: We have a positive though sluggish outlook for both Switzerland's major life and non-life insurance segments. Although the country is signified by the strength and maturity of its markets, this implies also that premium growth is limited in the foreseeable future. The overall insurance sector will be driven primarily by non-life insurance, where total premiums are boosted by health insurance in particular - on the back of rising per-capita private healthcare spending.
Switzerland Medical Devices
BMI Industry View: We expect the Swiss medical device market to exhibit below average growth for the Western European region over the 2014-2019 period, with other medical devices and consumables registering the highest growth during this period. Further depreciation of the Swiss franc against the US dollar will be the main factor restricting growth in US dollar terms during the early part of the forecast period. Over the last 15...
Pharmaceuticals & Healthcare
Switzerland Pharmaceuticals & Healthcare
BMI View: The expected growth of Switzerland's ageing population over the next 50 years will have an unprecedented impact on the demand for healthcare. This has the potential to provide private healthcare providers with significant business expansion and revenue-earning opportunities, especially as the government tries to provide healthcare services while containing costs.
Headline Expenditure Projections
Pharmaceuticals: CHF7.06bn (USD7.71bn) in 2014 to CHF7.07bn (USD7.26bn) in 2015; +0.08% in local currency terms and -5.8% in US dollar terms. Forecast revised upwards from last quarter.
Healthcare: CHF70.49bn (USD77.02bn) in 2014 to CHF72.09bn (USD74.12bn) in 2015; +2.3% growth in local currency terms and -3.8% in US dollar...
BMI View: A gradual nuclear phase-out in Switzerland by 2034 could jeopardise the country's energy security. Despite aggressive targets for hydropower growth, operators have pointed out that all economically feasible sites have already been developed, and in many places there is strong local opposition to new hydro plants. Renewables power generation is growing, but the country could end up a net importer of baseload power following the nuclear decommissioning.
Alpiq is refurbishing the Nant de Drance hydroplant. The 900MW Nant de Drance pumped storage plant will be designed to generate power at times of peak consumption. The facility will be situated...
BMI View: The Swiss telecoms market takes advantage of high-income households and a willingness to pay to top services which drive ARPU, but the dominance of incumbent Swisscom remains a concern. Price-cutting has failed with operators, including the new entrant Salt Mobile, competing on services, but Swisscom continues to call the shots, as highlighted by its move for convergence to consolidate its leadership in a saturated market.
There were 10.75mn mobile subscribers in Switzerland as of Q215, a y-o-y growth of 0.7%. Swisscom continues to dominate the market with a share of over 60%.
The incumbent reported 1.3mn bundles, 10.5% of its overall customer base, with 278,000 quad-play customers.
The move towards convergence has helped the incumbent in the pay-TV market, catching up with market...