One in two Swiss companies is feeling the impact of the war, according to a survey conducted this month by the Swiss Business Federation ( economiesuisse ) among 306 companies.
The main concerns are rising energy prices, higher prices for a number of raw materials, and disruptions to supply chains that delay shipments of essential materials for industrial production.
All this will cause an increase in the prices of some consumer goods, warns economiesuisse .
“For example, the chemical industry uses raw materials to make products that are used in our daily lives, from plastics to fertilizers. Electronic devices, cars or sporting goods such as bicycles and e-bikes could become more expensive, but also many food,” says economiesuisse in a reportexternal link.
A thick cushion of savings
The tourism industry, which has already been devastated by the coronavirus pandemic, is feeling the effects too, and not just because fewer Russians are visiting the Alps. “Some tourism service providers have reported that some US and Asian travelers are avoiding Europe because of the war,” says economiesuisse .
Sanctions imposed on Russia by the United States and the European Union are having an impact on the financial sector, but have so far had little effect on other industries.
A survey conducted by the consulting firm Deloitte external linkamong 99 Swiss CFOs revealed many of the same problems. However, CFOs surveyed were optimistic that Switzerland is better prepared than other countries to deal with the geopolitical crisis.
Part of that confidence can be explained by the fact that Switzerland has weathered the COVID-19 pandemic better than other economies.
57% of Swiss CFOs expect their company to prosper in the next 12 months, compared to just 15% who anticipate financial difficulties.
Although most companies intend to pass on most of their rising costs to consumers, they nonetheless expect inflation to remain within manageable levels.
“CFOs are confident that consumer prices won’t rise significantly in their country. They expect consumer price inflation to be 2% over the next two years,” Deloitte says.
Both Deloitte and economiesuisse agree that a strong franc will shield Switzerland from the worst effects of global inflation by cushioning rising import costs.
However, Deloitte warns that the Swiss economy cannot function in isolation. “The economic indicators of our most important trading partner, Germany, also look less positive. Therefore, it remains to be seen in the coming weeks and months whether Switzerland’s economic recovery will continue or whether we will slip back into a recession,” he noted. CEO Reto Savoia.
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