Switzerland: optimism in companies despite Brexit

For the first time, since the end of 2014, between the financial directors of Swiss companies optimists outnumber pessimists about the economic outlook, despite Brexit. This is what reveals a survey released today by the consulting firm Deloitte, which questioned 115 cfo. Almost a third of respondents (compared to 31% in the second quarter 2016 and 24% in the first quarter 2016) argues that global economic prospects for Switzerland are positive, while 18% are more pessimistic.

This optimistic trend is also confirmed by the forecasts of financial performance of companies. Almost half (49%) of CFO respondents expect a positive development of business in the next twelve months, compared to 20% who take the opposite view. Despite a slight decline, a majority of 59% still predict growth in sales in the next twelve months, compared with 23% who see them decrease. The pressure on margins, however, remains high: 38% expect operating margins declined, compared with 26% in progress.

It is also the first time in two years now that dramatically increases the propensity to risk acceptance. Despite the positive signs, a large majority (70%), however, remains cautious about it and not think it's the right time to reach out to new risks. The decision of the UK to leave the European Union (EU) is causing concern among Swiss CFOs. The proportion of those who expect the negative consequences for their businesses more than doubled compared to those who were concerned before the referendum (42%, against 17% in the previous quarter). Only 2% expect positive effects, while 53% believe that the outcome of the vote in the UK will have no or almost no consequence.

Michael Grampp, chief economist of the consulting firm, says that with Brexit, external insecurity remain high. "Swiss companies have been able to manage well the recent socio-economic challenges, even exceed this test."