Financial sector remains important for the Swiss economy
Published: Thursday, Nov 28th 2024, 12:10
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The financial sector remains a major pillar of the Swiss economy. In addition to basic services (bank accounts, loans, insurance) in Switzerland, the sector makes a substantial contribution to exports. Banking services accounted for 16.0% of service exports in 2023, while insurance services accounted for 6.4%.
A total of CHF 108.4 billion in added value was created along the value chains of banks and insurance companies last year, according to a study published on Thursday by BAK Economics on behalf of the Swiss Bankers Association (SBA) and the Swiss Insurance Association (SIA). This is associated with almost 480,000 full-time jobs.
Of the total value added, CHF 73.9 billion is attributable to direct effects and CHF 34.5 billion to indirect effects. Indirect effects arise when banks and insurance companies trigger economic activities in other sectors, for example by procuring consulting and IT services. In addition, trade and commerce benefit from the consumer spending of employees in the financial sector.
Decline in employment due to CS
The industry also makes a substantial contribution to tax revenues in Switzerland: According to BAK Economics, these amounted to CHF 20.7 billion in 2023. That is 12.6 percent of the public sector's fiscal revenue. On the one hand, this results from the taxation of income and profits. On the other hand, financial market transactions and financial services are taxed.
According to the study, banks are expecting growth in commission business this year. Meanwhile, demand for credit is likely to remain stable. Meanwhile, the integration of Credit Suisse into UBS and the planned job cuts are likely to shape employment trends at the banks. In 2024, an overall decline in employees of 0.6 percent is expected, followed by a decline of 1.1 percent in 2025.
For their part, insurance companies are in a "tough market" due to high claims payments in the past and economic uncertainty, according to the BAK economists. High demand meets scarce supply - which is why an increase in insurance volume is to be expected.
©Keystone/SDA
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