Swiss CFOs call for more free trade
Despite ongoing geopolitical tensions, trade conflicts and new US tariffs, Swiss CFOs are more confident than in the spring. However, many expect the economic environment to remain difficult and are calling on politicians to take measures for more free trade, as the latest CFO survey by Deloitte shows. Meanwhile, over a third of CFOs are planning to cut jobs in Switzerland.
CFOs' expectations regarding economic development in Switzerland have improved noticeably since the low point following the tariff shock in spring (see Figure 1), but remain cautious for Switzerland: 37% expect a negative or very negative economic trend, while 24% are positive or very positive, according to the latest CFO survey conducted by the auditing and consulting firm Deloitte Switzerland. 119 CFOs from all major sectors and from both listed and unlisted companies took part in the survey.
Financial developments: Only half of CFOs are optimistic
There are also signs of a recovery at company level. Over half (52%) of the CFOs surveyed are optimistic about their company's financial development over the next twelve months, compared to less than half as many in April (23%). 36 percent also expect margins to increase.
There are striking differences in the assessment with regard to the most important trading partners: While CFOs continue to take a very negative view of the economic development of the USA and Germany for the next twelve months (USA: 62% negative or very negative; Germany: 48% negative or very negative), they are much more positive about the prospects for China (39% positive or very positive).
Job relocations
The strong Swiss franc and the US import duties of 39% on various Swiss exports introduced in August are putting pressure on Switzerland as a business location. This is also reflected in personnel planning: more than a third of the CFOs surveyed (37%) therefore expect their company to cut jobs in Switzerland over the next twelve months. At the same time, a similar number (35%) expect the number of their employees abroad to grow, which indicates that jobs will be relocated abroad.
«Internationally, we are seeing major uncertainties, but CFOs are relatively positive despite the challenging situation. The past has shown that Swiss companies are good at dealing with difficult situations and adapting. Companies are relying on their experience and agility to overcome the current challenges. It will now be crucial for politicians to improve the economic framework conditions and tackle pending reforms,» says Alessandro Miolo, Head of Audit & Assurance at Deloitte Switzerland.
Global risks determine the worry barometer
The biggest corporate risks are all characterized by international factors: geopolitical challenges continue to top the list of concerns of the CFOs surveyed, followed by trade conflicts and currency risks, which have become much more important. The weaker US dollar against the Swiss franc is making export conditions even more difficult.
More free trade and safeguarding the liberal labor market
Companies are responding to the increased trade barriers primarily by adjusting sales prices (34%) and reducing costs (27%). 9 percent are considering relocating their production abroad or between foreign locations. At the same time, many CFOs see the current crisis as an opportunity to invest more in technology and new business areas in order to strengthen their competitiveness and resilience in the long term.
External factors such as US tariffs and geopolitical tensions are putting Switzerland under severe pressure as a business location. The CFOs surveyed are therefore calling for targeted measures to improve Switzerland's attractiveness as a business location (see Figure 2). In first place is the call for further negotiations to reduce US tariffs on Swiss exports and further free trade agreements with other countries (both 55% agreement each). This is followed by the conclusion of new agreements with the EU (51% approval). Securing the liberal Swiss labor market is still important to 44% of respondents. Other measures, such as the suspension of the OECD minimum tax or general tax relief, are only seen as part of the top 5 measures by a small number of CFOs (18% each).
Source: Deloitte
