Investment projects boom in Switzerland

Investment projects by foreign companies in Switzerland rose 25% last year as the coronavirus pandemic slowed momentum in a large part of Europe, a study by audit firms and EY advised on Monday.

With 91 projects listed in 2020, the Confederation is ranked 14th in the European rankings in terms of foreign investment, down three places from 2019.

The trend reversed in Europe, where foreign investment projects fell 13% last year to 5,578 projects. “Even in 2009, after the financial crisis, there was no such collapse,” EY said. Like Switzerland, some countries such as Austria, Poland and Turkey nevertheless attracted more investment projects than in 2019.

“The (coronavirus) pandemic caused a kind of shock wave across Europe in early 2020, with austerity measures and the temporary halt of many investment projects,” said Michael Messerli, Head of Strategy and Transactions at EY. “But in the second half of the year, the economy picked up everywhere – sometimes even surprisingly quickly – and the investment context has recovered,” he continued.

It is mainly German companies that have come to settle in Switzerland, almost doubling the number of investment projects in the Rhine. US companies come in second place, while “British investor interest has declined markedly”. Italy’s investment in Switzerland remains low.

alternation of supply chains

In the other direction, Swiss investment projects abroad were almost as numerous in 2019 (258) as in the previous year (256). But Germany has robbed France of its number one destination for Swiss companies. It is followed by Spain and the United Kingdom, which each record a third of investment projects.

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With the European continent expected to benefit from the COVID-19 pandemic, many companies are reevaluating their supply chains. So they are looking at bringing back some sites to avoid bottlenecks. The shortage of semiconductors thus shows that “strengthening the supply chain is now a priority for many companies, in order to reduce their dependence”, on some distant countries, added André Bieri, partner and responsible for Switzerland and Liechtenstein. .

Europe with its 750 billion euro recovery plan, as well as the United States and its massive economic aid programs, should capture a significant portion of investment projects.

As for Switzerland, it will have to “position itself as an economic hub and place of sustainable investment and regularly monitor and adapt the regulatory framework”, estimated EY.

This article was self-published. Source: ats/awp

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