EY study: Investments in Switzerland slump by 24 percent
Foreign investment projects in Switzerland in 2025 have fallen to their lowest level in years. The latest EY study shows who is still investing - and why German companies have halved their projects.
Investments from abroad decreased in 2025. (Image: Depositphotos.com)[/caption]
The number of foreign direct investments in Switzerland fell significantly in 2025. According to the new European Attractiveness Survey by EY, investments in Switzerland fell by 24% - from 111 to 84 announced investment projects. This shows a similar trend in Switzerland as in Europe as a whole, where the number of projects fell by seven percent to 5,026, the lowest level in eleven years. The last time fewer investments were counted was in 2014.
Investment climate in Europe under pressure
The downward trend in foreign direct investment in Europe continues. Despite a decline of 17% to 852 projects, France remained the frontrunner, ahead of the UK (730 projects, down 14%) and Germany (548 projects, down 10%). Contrary to the general negative trend, some locations recorded growth: Turkey increased by 20 percent to 383 projects, Poland by ten percent to 285 and Spain by seven percent to 376. The Netherlands grew by eight percent to 159 projects. Switzerland and Austria ranked 13th and 14th in Europe - both with significant declines.
André Bieri, Markets Leader Switzerland and Liechtenstein at EY, explains the continuing decline in investment in Europe as follows: «The protectionist initiatives of the USA, for example large subsidy programs or tariffs in favour of domestic production, are slowing down investments in EU production locations in particular. At the same time, there is uncertainty as a result of geopolitical developments. In particular, this includes the risk of a recession in the USA, which could spill over into Europe.»
USA remains largest investor, German projects halved
US companies slightly reduced their investments in Switzerland in 2025 from 27 to 25 projects (minus seven percent), but created 158 new jobs in the process - more than in the previous year (131). The USA thus remained the largest single investor in Switzerland. Bieri explains the relatively low number of projects: «At first glance, this figure may seem low. However, one should bear in mind that jobs with very high added value are typically created in Switzerland - especially in comparison to other European countries, where many of the newly created jobs are in the routine sector.»
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André Bieri sees Switzerland as a gateway for US companies to enter the European market. (Image: zVg / EY)[/caption]
German investments in Switzerland were hit the hardest: these halved from 14 to seven projects (minus 50 percent), while the number of new jobs created fell from 123 to 14. France and the UK overtook Germany with nine projects each. They were followed by China with four projects and Belgium and Japan with three projects each.
On the situation of Switzerland as an investment location, Bieri says: «Despite declining investment, Switzerland continues to act as a gateway to Europe for US companies, which is why investment from the USA remains high. Switzerland continues to offer well-known location factors, combined with legal certainty and an attractive tax system. An established environment for research and development as well as for new technologies and the corresponding talent are further drivers that characterize our country.»
Swiss companies invest less abroad
Swiss companies also reduced their investments in other European countries in 2025: The number of projects fell by 13% to 214, creating 7,583 new jobs in the target countries (2024: 11,872). Switzerland therefore remains the sixth largest country of origin for investments in Europe - behind the USA (943 projects), Germany (484), the UK (360), France (295) and China (261).
In 2025, Swiss companies invested primarily in France (35 projects, 1,260 new jobs) and Germany (34 projects, 851 jobs). Spain, Poland and Turkey followed with 17 projects each and Italy with 15. However, investments in France and Germany fell significantly compared to the previous year - by 39% and 28% respectively.
Defense sector as a growth segment
The defense sector recorded a strong increase: the number of foreign investment projects in this area rose by more than 80% across Europe - from 58 to 107 projects. The largest target countries were the UK (20 projects), France (14) and Ukraine (12). The main drivers were US companies, which increased their projects from nine to 28. German companies were the second most important group of investors in the defense sector. In total, defense investments created almost 7,000 new jobs across Europe (2024: around 3,150).
Source: https://www.ey.com/ch
