Recession is unavoidable, reckon Swiss finance bosses
The coronavirus pandemic has fundamentally changed the economic outlook for Switzerland within a very short period of time, with Swiss CFOs more pessimistic than ever before.
This content was published on
2 minutes
Keystone-SDA/ts
Español
es
La recesión es inevitable, estiman financieros suizos
Neither during the euro crisis nor during the Swiss franc shock were chief financial officers as negative about economic prospects as they are today, according to the latest half-yearly surveyExternal link published on Monday by consultants Deloitte.
Deloitte’s 38th CFO survey was carried out online between March 2-30. It thus straddled the government’s imposition of sweeping measures on March 13.
Despite the circumstances, 90 CFOs of listed and non-listed companies took part.
(Source: Deloitte)
Although the surveys have been indicating a cooling off for almost two years, there has now been a real crash in confidence: 97% of the CFOs surveyed after mid-March expect the economy to develop negatively over the next 12 months – and 41% of them even foresee a strongly negative dynamic.
In addition, two-thirds (67%) see a negative financial development for their company and only 15% see a positive one. Overall, 93% see their company’s future as less rosy than three months ago.
More than three-quarters (78%) expect a decline in sales, while more than half (52%) expect the number of employees to decline within a year.
Digitisation push expected
However, the majority of Swiss CFOs are actively countering the crisis, the survey reported. For example, 91% of companies have taken measures to curb the weak growth; the most frequently cited measures were cost savings and revenue generation.
The really successful companies were already looking at the post-crisis period, said Alessandro Miolo, responsible for the CFO study at Deloitte.
“They are examining possible purchases or sales of parts of the company and implementing necessary internal changes in a targeted manner. I expect a major push in digitisation as a result of the [coronavirus] crisis,” says Miolo.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
More
More
Coronavirus: the situation in Switzerland
This content was published on
An overview of the latest Covid-related information in the Alpine nation.
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
Pandemic pushes more Swiss businesses to short-time working
This content was published on
In order to avoid mass lay-offs, Swiss firms are resorting to a measure that has proved its worth in times of crisis: short-time working. What is it?
Start-up firms feel frozen out of coronavirus bailout funds
This content was published on
Start-ups are falling through the cracks of a state-sponsored funding scheme designed to keep companies afloat during the coronavirus crisis.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.