Economic growth: Swiss CEOs are the most optimistic worldwide, but are focused on the domestic market

Zurich, 20 January 2025 – Swiss company leaders are looking positively ahead at the new year. Not only are they more confident than their international CEO counterparts, but are also much more optimistic than a year ago – despite the tense global situation. There’s a great deal of confidence, especially with regard to the Swiss economy, which has proven to be resilient. PwC’s 28th Annual Global CEO Survey shows how CEOs are steering their companies through uncertain times and how they assess important future topics.

More than half (56%) of the Swiss CEOs surveyed expect the global economy to grow over the next 12 months. Although geopolitical tensions have intensified and economic uncertainty has increased in some regions of the world, only 20% of those surveyed expect the economy to deteriorate. A year ago, more than half (52%) expected the global economy to shrink. This confidence is probably due to the fact that markets and the economy have proven resilient despite unstable times. “The confidence of the Swiss CEOs shows how strong the domestic economy remains even in difficult times. Stability and innovation form the basis for successfully overcoming challenges,” says Gustav Baldinger, CEO of PwC Switzerland.

Their assessment of the economic outlook in Switzerland is even more positive: two-thirds (68%) of CEOs expect the domestic economy to grow this year. This is almost double the figure for last year when only 38% of CEOs anticipated growth, while a larger proportion of respondents (43%) expected growth to decline. The fact that the Swiss economy has proven to be more resilient to crises than other economies is likely to have contributed to the positive mood in this year’s survey.

More investments – primarily in Switzerland
The confidence that the CEOs surveyed have in the Swiss economy is correspondingly high, with around a quarter planning to invest between 10 and 25 million dollars in the next 12 months – half of which will be in Switzerland. This puts Switzerland in second place worldwide when it comes to domestic investments as a proportion of total investments. Swiss CEOs currently consider investments in other countries to be uncertain or associated with higher risks and are therefore acting with greater caution.

The positive mood among Swiss executives is also having an impact on the job market. This means that most of the CEOs surveyed want to maintain their staffing levels, with around a quarter (24%) even planning to increase their headcount, while only 14% have plans to reduce their workforce. The resilience of Swiss companies to crises is also evident in the long term, with the majority of CEOs (57%) believing that their companies will be economically viable over the next ten years.

Cyber risks are the biggest concern – climate change is a marginal issue
Cyber risks are the top threat for 37% of the Swiss CEOs surveyed. This topic dominated last year’s survey and continues to grow in importance. Geopolitical conflicts follow at 23% and have doubled compared to 2023, but are rated by 72% of the Swiss CEOs surveyed as only marginally relevant for their companies. Concerns about macroeconomic volatility (17%) have also more than doubled compared to last year and represent the third greatest threat for the company leaders surveyed.

Climate change, however, appears to be losing its risk potential for Swiss CEOs. Only 1% state that their company is directly affected by climate change, while internationally 15% of respondents consider its impact to be business-critical. Social inequality, on the other hand, is gaining in importance and is now named as a relevant issue by 4% of Swiss CEOs (compared to 0% last year).

Despite the low relevance of climate change, nine out of ten Swiss CEOs have made climate-friendly investments in the last five years – the highest figure worldwide. However, the proportion of company leaders (around half) who don’t accept lower returns on this type of investment is also higher than in other parts of the world. Other obstacles to investing in climate protection include a lack of demand from external stakeholders and complex regulations. “Climate change remains a huge challenge. Since the timing and content of the regulations are still unclear, there’s widespread fear of unexpected opportunity costs. CEOs should pursue flexible investment strategies that can be adapted to changing standards and work with political decision-makers to create clearer regulatory frameworks. This dual approach helps to mitigate risks and position companies for future success in a climate-conscious world,” says Gustav Baldinger.

Pressure and urgency regarding the adoption of artificial intelligence (AI)
A lot has happened in the field of AI since the last survey a year ago. 84% of CEOs say they have used AI in their companies in the past year, compared to only 16% a year ago. This shows that companies have recognised how important AI is for keeping up with international competition and fully exploiting its potential.

Swiss CEOs primarily report increased efficiency in their own work and among their employees (52% in both cases). Overall, the positive effects have weakened somewhat compared to the previous year. Back then, one third of those surveyed said they would increase their company’s profitability through generative AI, but now that figure stands at 22%. Only 17% expect a direct increase in sales. CEOs worldwide are much more optimistic, with almost half expecting their profitability to increase next year as a result of AI.

12% of CEOs surveyed in Switzerland fear that the use of generative AI will lead to job cuts, while only half as many expect staff numbers to increase. There are other concerns, too: only 27% of CEOs surveyed trust artificial intelligence when it comes to using it in their most important business processes. This is one of the lowest figures worldwide.

“Companies in Switzerland are undergoing transformation – challenges and opportunities are closely intertwined. While short-term profitability remains a priority for CEOs, our data show how important it is not to neglect long-term growth investments. By using AI, data-driven decision-making and adaptive climate strategies, we can turn existing uncertainties into a competitive advantage,” explains Gustav Baldinger.

About this survey
The Swiss edition of the 28th CEO Survey is based on the 28th Annual Global CEO Survey by PwC Global. The survey took place between 1 October and 8 November 2024. A total of 4,701 CEOs from 109 countries worldwide were surveyed, 82 of whom are in Switzerland. Of the CEOs in the Swiss sample, 36% represent the financial sector, 26% industry and services, 16% healthcare, incl. pharmaceuticals, 11% energy, supply and resources, 11% consumer markets and 5% technology, media and telecommunications. 55% of the participating companies employ fewer than 500 people, 35% between 500 and 4,999 and 10% between 5,000 and 25,000. 39% of the CEOs surveyed represent companies with a revenue of less than CHF 100 million, 41% companies with a revenue between CHF 100 million and CHF 999 million and 17% companies with a revenue of more than CHF 1 billion. 35% are listed on the stock exchange, 34% are family-owned companies and 23% are owner-managed.