Multinational companies remain a key pillar of the Swiss economy. Although they account for only around 6 percent of all companies in the country, they generate 42 percent of Switzerland’s gross domestic product (GDP), according to a study by McKinsey on Switzerland’s competitiveness.
Since 2014, multinational companies have generated around three-quarters of Switzerland’s nominal economic growth. At the same time, concern is growing among corporate executives that Switzerland is losing some of its appeal in the international competition for business locations.
Deterioration in Key Location Factors
The study by McKinsey and the Swiss-American Chamber of Commerce is based on a survey of corporate executives. Around 70 percent of CEOs surveyed say Switzerland has deteriorated relative to international business hubs in at least three key location factors.
Regulatory conditions, the tax environment and infrastructure are viewed particularly critically. Around 70 percent see a deterioration in the country’s «ease of doing business,» citing regulatory complexity and slow processes in particular. Some 65 percent see disadvantages in the tax environment, including those related to the OECD global minimum tax. Another 60 percent point to infrastructure bottlenecks.
