With the rebound of economic growth, business failures are expected to decrease year-on-year in 2018, but nevertheless to remain on an elevated level.
The insolvency environment
Corporate insolvencies expected to decrease, but to remain high
Since 2015 Swiss business insolvencies have recorded annual increases due to a more difficult economic environment. With the rebound of GDP growth, business failures are expected to decrease 6% in 2018, but to remain high at about 6,285 cases
Growth expected to pick up in 2018 and 2019
After a rather modest economic performance in 2017, Swiss GDP growth is expected to pick up in 2018 due to increased domestic demand and a rebound in exports.
Negative interest rates (the Central Bank has kept the benchmark interest rate at -0.75% since 2015) support private consumption and investment growth. Inflation is expected to remain below 1% in 2018.
After a contraction in 2017, exports (which account for 70% of GDP), are expected to increase 2% year-on-year in 2018 and 2019, helped by a surge in eurozone demand and a depreciation of the Swiss franc against the euro. The Central Bank has repeatedly stated its intention to intervene in the foreign exchange market to ease pressure on the Swiss franc.