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Swiss businesses adjust to strong Swiss Franc amid uncertain economic outlook

Xinhua, October 26, 2015 Adjust font size:

A Deloitte CFO Survey for Q3 2015 indicated on Monday that over 37 percent of the 110 Swiss chief financial officers (CFOs) questioned feared that Switzerland's economic outlook for the next year would be negative.

While still high, the rate was lower than in this year's Q2, when 41 percent were pessimistic about the country's economic future.

According to the survey's results, Swiss businesses seemed to have accepted new economic realities while progressively adjusting to the exchange rate appreciation.

"Although the economic outlooks are still dampened, the overall mood appears to have brightened in the last two quarters. Swiss companies observed the weakening of the Swiss franc in recent weeks with relief," said Michael Grampp, chief economist at Deloitte in Switzerland.

Despite that, one quarter of Swiss CFOs predicted that the confederation would go through a recession in the next two years, with uncertainties regarding growth in China and other emerging nations compounding the Swiss Franc's lasting value.

Figures showed that 67 percent (down from 70 in Q2) of CFOs saw the strength of Switzerland's currency as the biggest risk to business, while enhanced regulation in the country and geopolitical risks were also seen as threats by 61 and 59 percent of the participants respectively.

Regarding internal risks, over half (53 percent) considered skills shortage as a crucial factor for the next year.

"Having the right employees is a key competitive factor for Swiss businesses in the current environment. This makes it all the more important that they continuously focus on recruiting and retaining highly qualified staff," Grampp explained. Enditem