الثلاثاء, يناير 30th 2024
Swiss industry faces a downturn with weak international demand and unfavourable exchange rates, UBS reports. No immediate recovery in sight, impacting jobs and exports.
Swiss industry down, as UBS paints a bleak future. Weak foreign demand troubles the sector. Recovery seems distant, says the bank’s latest economic outlook.
The early 2000s saw similar challenges for the Swiss industry. Back then, a weak Swiss franc and China’s demand provided relief. Today’s scenario differs, UBS’s chief economist, Alessandro Bee, shared in an online briefing.
The Swiss franc’s recent strength exacerbates export challenges. The brutal euro-franc exchange rate most strains the mechanical and electrical engineering sectors. Price-sensitive industries face stiff competition, Bee notes.
Electrical equipment, machinery, and pharmaceutical sectors react sharply to currency fluctuations. Conversely, base metals and chemicals show resilience against a strong Swiss franc.
Geopolitical tensions add to the woes, UBS observes. Trade barriers rise amidst global conflicts, hindering globalisation. Swiss exports, especially in food and metals, suffer from protectionism.
However, some sectors like machinery and pharmaceuticals benefit from liberalisation. Yet, UBS remains pessimistic about a quick industry turnaround. High product inventories delay production recovery, even with potential demand increases.
The MEM industries, major employment contributors, anticipate tough times ahead. Weak exports and sluggish Eurozone growth hint at job losses. About 5,000 positions might vanish in critical industry quarters, UBS predicts.
Skilled worker shortages could soften the blow, but specialisation hinders easy job transitions. Bee concludes that solid consumption and a hopeful Eurozone rebound by year-end may support the industry despite challenges. Swiss industry down, even large companies like Geberit struggled last year.
©كيستون/إسدا
Arabic 
English 
German 
French 
Spanish