Stable foundations provide support
The global economy is proving resilience at the end of the year and is moving towards a more sustainable growth path. Although momentum has slowed following the exceptional impetus of recent years, the overall economic environment remains constructive. In the US, a continued solid labour market is supporting consumption, while investments, particularly in technology, energy and infrastructure, are providing additional support. Europe is gaining momentum thanks to fiscal programmes, again in infrastructure, energy and defence, even if the economic recovery is proceeding at different speeds across the region. Asia confirmed its continued strong growth, as in previous years driven by China, India and robust domestic demand in several emerging markets.
Inflation is declining globally and gradually approaching the target values set by central banks. At the same time, it remains elevated in certain areas, particularly services. Central banks are therefore acting cautiously and avoiding abrupt changes in direction. Overall, an environment of falling interest rates is emerging, which supports economic activity and improves planning security for companies.
The pace of economic growth in Switzerland has slowed noticeably, particularly in the export-oriented industrial sector. At the same time, the economy is proving to be remarkably resilient. The labour market remains stable, the domestic economy solid, and the ongoing zero interest rate environment increases the attractiveness of equities and real estate. Supported by a high degree of diversification, strong innovative power and solid public finances, Switzerland is maintaining its position as a stable and reliable business location even in a more challenging global environment.
