Swiss Economic Outlook - A Flag in the Breeze

By Johannes Berchtold

At the St. Gallen Symposium Summer Discussion in Zurich, leaders from the Swiss business community today discussed Switzerland's short- and mid-term growth prospect. This comes at a time when Switzerland is anxiously looking at the outcome of next week's Brexit referendum in the United Kingdom. A leave vote would not only put additional pressure on Switzerland's already strained relations with the European Union but would also bring the Swiss National Bank (SNB) in a delicate position. As Thomas Jordan, Chairman of the Governing Board of SNB pointed out in his speech, the Swiss franc would serve as a safe haven and appreciate strongly against the Euro. The SNB is ready to defend the Swiss franc on the exchange markets. But monetary policy can only partially influence Switzerland's growth prospect. Jordan applauded the Swiss business community for having done their homework after the franc shock of January 2015. Positive export data show that, although still struggling, companies have trimmed themselves fit against the backdrop of a long-lasting strong Swiss currency.

Andreas Schmid, inter alia Chairman of Zurich Airport, supported this view adding that it is not so much the strong currency that hurts Swiss business but a rigorous and rapidly expanding regulatory framework.

Monique Bourquin, board member of Emmi Group, shed light on the discussion from a consumer perspective explaining the role of the retail business for Switzerland's growth recovery. Over 100 representatives from the St. Gallen Symposium's Circle of Benefactors attended the event and contributed to a lively debate.

The Summer Discussion took place in the light of the 46th St. Gallen Symposium (), held on the topic "Growth - the good, the bad, and the ugly".