Corporate outlook bright despite gathering risk clouds

The Deloitte CFO Survey Switzerland – first half-year 2024

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Summary

Spring is here, and economic optimism is rising – but not across the board. Whilst most CFOs are confident about their company’s prospects over the next 12 months, expectations for employee numbers have fallen. However, geopolitical and regulation risks have again risen for CFOs in Switzerland.

About the report

The Swiss CFO survey provides an overview of the financial attitudes of Chief Financial Officers and Group Finance Directors of major companies based in Switzerland. Published bi-annually, the Swiss Survey is aligned to the European CFO survey, including a mix of questions relevant to the CFO at a business environment, company and operational level.

Key findings

Economic outlook

Disparity in expectations

Spring is here, and as the temperature increases, so too does economic optimism – but not across the board. While Swiss CFOs rate the outlook for their own economy and that of the US much more positively than in H2 2023, most remain pessimistic about the outlook for China and very pessimistic about the outlook for Germany.

Corporate outlook

Expectations for recruitment fall

Most CFOs are optimistic about their company’s prospects over the next 12 months and rate them as slightly more positive than in H2 2023. The sole exception is expectations for number of employees, which are markedly down on H2 2023.

Corporate risks

Geopolitical and regulatory risks top the table

Geopolitical risks have again risen to the top of the table of corporate risks. Geopolitical risks – current and looming wars, geopolitical conflict and elections – constitute the most frequently cited risk, followed in second and third place respectively by weak demand and skills shortages. CFOs also see regulation as a significantly greater risk.

Pension increase

How should it be funded?

Switzerland is boosting the AHV pension by introducing a 13th annual payment – but this increase needs to be funded. A majority of Swiss CFOs agree that the extra cost should not be met primarily out of higher taxation and social security contributions but rather by raising the retirement age. They believe government subsidies totalling CHF 49 billion a year provide plenty of scope to reduce current spending and use the money instead to fund the additional pension payment.

Sustainability goals

Opportunities and challenges

Complying with sustainability goals remains a challenge for companies generally and for their finance function in particular. Some companies have already made substantial progress, but most CFOs rate the cost of implementation as high.