Companies in Switzerland invested double the amount abroad in 2018 than the previous year, figures show. But foreign investors withdrew capital from Switzerland due to a US tax reform.
This content was published on
2 minutes
Keystone-SDA/SNB/ilj
Português
pt
Investimentos de empresas suíças dobram no exterior
In 2018, companies domiciled in Switzerland invested CHF 61 billion abroad ($62 billion) (compared to CHF30 billion in 2017). Around three-quarters of the direct investment were from firms in the services sector, the Swiss National Bank said on Friday.External link
“Financial exposure abroad saw particularly large increases in the trade sector (CHF32 billion) and among finance and holding companies (CHF13 billion). Participations were a major focus of these investments,” the statement said.
Manufacturing accounted for CHF13 billion abroad, with the most significant share here in chemicals and plastics.
The bulk of the investments went to Europe, “notably to the two holding company locations of Ireland and Luxembourg as well as to the UK”. Swiss-based firms also undertook major investments in Central and South America (CHF18 billion) and Asia (CHF5 billion). However, net withdrawals of funds were made from subsidiaries in the US (CHF12 billion) and Australia (CHF8 billion).
Foreign direct investment in Switzerland
Investors abroad made a net withdrawal CHF52 billion (in 2017 the net investment was +CHF106 billion) – from Switzerland in 2018, the SNB reported. “This was the first such reduction in capital since 2005,” it said.
“As in 2005, the reason was a tax reform in the United States: US parent companies made use of the Tax Cuts and Jobs Act to repatriate part of their equity reserves from subsidiaries in Switzerland. This was true in particular of finance and holding companies, which withdrew funds of CHF 32 billion,” the statement said.
“The various categories in the manufacturing sector as well as the majority of service-sector categories also saw net withdrawals. Some of these withdrawals, too, were linked to the US tax reform.”
Overall, stocks of foreign direct investment in Switzerland amounted to CHF1,296 billion.
More
More
Switzerland falls in foreign investment ranking
This content was published on
Despite a slightly better score Switzerland has dropped four places as a destination for foreign direct investment over the next three years.
Switzerland abstains from vote on Palestinian bid for full UN membership
This content was published on
On Friday, Switzerland abstained from the vote at the General Assembly on granting the Palestinians new rights at the United Nations (UN).
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.
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.
Read more
More
Swiss economy tipped to remain stagnant next year
This content was published on
A government expert group concluded that economic growth would rise only 0.9% this year, 1.7% in 2020 and 1.2% in 2021. However, much of the expected growth next year will be generated by one-off sporting events, including the Summer Olympics in Tokyo. In its quarterly forecast, the group predicted a slow-down in construction activity and…
This content was published on
The Swiss remained in the number one spot for the third consecutive year, ahead of Japan, Canada, Germany and Britain, according to a survey by a United States media company published on Wednesday. Eight European countries feature in the top ten, with Australia and the US in seventh and eighth position respectively. “Switzerland is seen…
How easy is it to hold Swiss companies to account abroad?
This content was published on
Swiss citizens may soon vote on whether to make companies liable for their actions abroad. Three stories show the challenges of getting justice.
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.