Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

A look at our client portfolio and an analysis of the latest economic data indicate a downturn in domestic demand. At the same time, conditions are becoming more and more difficult in key export markets, especially Germany and the US. Germany is facing challenges in its energy and automotive industries, as well as significant debt and the growing burden of upholding its former status as Europe’s ‘growth engine’. Meanwhile, the deep social and geopolitical divide in the US is not just impacting the country’s political landscape but its economy as well. These factors are hampering its ability to reform and undermining its leading global position.

This is worrying news to start the New Year with, given how important these two export markets are for small and medium-sized enterprises (SMEs) and large corporations in Switzerland. And the situation is being exacerbated by persistently high – albeit falling – inflation in almost all export markets, coupled with a strong Swiss franc.

What is the main priority for Deloitte Switzerland in the coming months?

Sustainability will again be one of our top priorities this year, both internally and in our consulting activities for clients. This is because, from 1 January onwards, the provisions of the Swiss Ordinance on Climate Disclosures will apply to all public companies that meet certain size criteria.

In line with the recommendations by the Task Force on Climate-Related Financial Disclosures, the ordinance requires businesses to publish detailed reports of their climate-related information on governance, strategy, risk management and key performance indicators (KPIs).

Some Swiss companies will even have to align themselves with the EU’s Corporate Sustainability Reporting Directive, which is much broader still and encompasses disclosures on biodiversity, pollution, the circular economy, water and marine resources, own workforce, affected companies and corporate conduct.

Many businesses will have to spend a great deal of time, money and effort implementing these requirements in compliance with the law.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The Federal Council elections on 13 December. In what was a socially and geopolitically charged atmosphere, the Swiss Parliament sent out a clear signal. It showed that, despite being unspectacular (boring even, some might say), Switzerland’s political system is as reliable as a Swiss watch. A short primary election campaign, mainly in small groups, a few rounds of voting to fill the seven seats on the Federal Council, and then no time for the newly elected representatives to think it over and no long-winded hunting for coalition partners like you see in other countries. And the country’s four largest political parties are still in government, which helps maintain stability in Switzerland and thus legal certainty and investor confidence as well.

Either/or

And briefly: Fondue or raclette?

Definitely raclette. It means the cosy get-togethers and lively chats can go on for even longer!

Business and the economy

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

Narges Mohammadi from Iran being awarded the Nobel Peace Prize. This amazing woman has been fighting for human rights in her country for decades now, suffering huge personal losses in the process. I admire the courage she has shown, particularly in campaigning for the abolition of the death penalty and for upholding the rights of women and girls.

Either/or

And briefly: Halloween or Santa?

I like both, really. But because my three children are now too old for Father Christmas, Halloween – with lots of pumpkin pie – is a bit more 'on trend'.

Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

The economic data suggests that Switzerland will see average growth this year. Major drivers of the economy are the strong domestic consumption and the flourishing labour market.

However, the clustered risks related to inflation, labour shortages, weak economic performance in key sales markets, insecure energy supply and pending reform projects continue to weigh on our prosperity.

At the same time, our society must increasingly learn how to deal with artificial intelligence, in the sense of recognising the risks but – above all – taking advantage of the opportunities it provides.

What is the main priority for Deloitte Switzerland in the coming months?

We started our new financial year with plenty of momentum. This included the promotion of ten experienced employees to partner, and many other highly qualified employees to more senior positions.

We place strong emphasis on the targeted development of younger employees. In addition to the attractive working environment and many training opportunities that we offer, our Next Generation Advisory Board, which is made up of around a dozen highly motivated younger employees, is also extremely important.

Over the coming months, we will all be very busy helping our clients to solve the challenges they face, many of which are very complex. This includes handling the risks I mentioned at the start. However, these risks also offer considerable opportunities.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The people in Ukraine again: their courage, determination and resilience are incredible. I am deeply impressed by the way they have been dealing with the hardships and fears and the loss of human lives and material possessions for what is now more than a year.

Either/or

And briefly: Coast or mountains – what do you prefer in the summer holidays?

I like both a lot. But this year will take me to neither: I will be spending my summer holiday in the desert.

Business and the economy

What current challenges in the Swiss economy will be felt most over the coming three months?

Most companies are confronted by a whole gamut of highly unpredictable developments: geopolitics and the closely related issues of energy policy, inflation and interest rates, economic slowdown, pending trade agreements – particularly with the EU and the UK – labour shortages and reform gridlock, especially with regard to retirement provision and healthcare. Making investment decisions in such circumstances needs a lot of foresight and entrepreneurial courage! In addition to all this, there are challenges and uncertainties in the finance and banking sector, not to mention the operationalisation of the takeover of Credit Suisse by UBS that has to be tackled in Switzerland. Against this backdrop, the rather cautious investment climate will undoubtedly have a dampening effect on our growth prospects.

What is the main priority for Deloitte Switzerland in the coming months?

First and foremost, to give our clients our full support in these volatile times in all relevant areas. The topics of sustainability, growth and digitalisation continue to figure high on their agendas. With regard to sustainability, we are making a corresponding contribution through our in-house, global WorldClimate strategy, under which we are aiming to halve our emissions from business travel by 2030, as well as encouraging our employees on a daily basis to make all of their activities more sustainable. This includes the work with clients as well as internal activities and events. To this end, we have set up a simple, practical process for all employees, which encompasses the various stakeholders. As the world’s largest audit and consulting company, with more than 400,000 employees globally and 2,600 in Switzerland, we have a responsibility to set a good example in the sector.

Deeply impressed

Which recent development have you been most impressed or preoccupied with?

The intense but, in my opinion, relatively aimless debate about Swiss neutrality. Although I have every respect for the history and traditions of our country, Russia’s war of aggression against Ukraine threatens almost everything we stand for in Western Europe – democracy, the rule of law and social principles, as well as economic and individual freedom.

It could almost be called cynical, the way we are insisting on the most restrictive interpretation possible of the right to neutrality – and this at a time when Europe is finally joining forces under the leadership of the USA to put an end to the immeasurable suffering of the Ukrainian people and to ensure respect for the rules of international human rights law.

Either/or

And briefly: Hunting for Easter eggs or enjoying the Sechseläuten festivities?

Definitely hiding and hunting for Easter eggs – together with my family.

Business and the economy

What do you think are the main challenges facing the Swiss economy right now?

The biggest challenges for our national economy are high inflation in the main procurement and sales markets, the resurgent Swiss franc and the looming economic downturn. If important trading partners were to slide into recession, it would pose a major challenge for our economy, which relies heavily on exports. At the same time, the shortage of skilled labour is slowing economic growth and thus standing in the way of greater prosperity. We must not underestimate the economic and societal risks associated with these challenges.

What is the main priority for Deloitte Switzerland in the coming three months?

We want to build on our positive experiences of hybrid working within the company. On the one hand, we want to continue enjoying the many benefits that working remotely brings us – such as greater flexibility and the fact that employees are often more focused at home and don’t lose time commuting. However, we are mindful how important it is to be physically present in the office or on client premises, especially for team spirit, creativity, workplace culture and maintaining relationships. Going forward, our employees will enjoy even more freedom to choose where they work. At the same time, they know how important personal interaction is in the people business, whether for customer satisfaction or for their own careers.

Deeply impressed

What have you been particularly impressed by in recent months?

The forces that were set in motion by Russia’s attack on Ukraine. Almost all European countries quickly united to defend the values of our Western civilization. It was impressive to see how quickly the different nations cut existing dependencies and found alternative suppliers for oil and gas. Even renewable energy projects are making much bigger strides now. I have been particularly impressed by people’s great willingness to help and the initiative they have shown. And at the same time, it was also impressive to see the US show leadership again.

The revitalisation of Europe is reducing its dependency on countries with authoritarian governments and strengthening the resilience of the free world. I hope we will show the same commitment to proactively tackling other geopolitical and existential challenges in future.

Either/or

Which do you prefer – Christmas or New Year’s Eve?

Christmas, because I get to relax and spend quality time with loved ones during the festive period. But I must admit, I also like New Year’s Eve and the feeling of starting the new year full of optimism.